Rule 86A of the CGST Rules, 2017 — Blocking of ITC —–The petitioner challenged the impugned order dated 04.04.2022, whereby electronic credit ledger in respect of reversed ITC, interest and penalty amounting to Rs. 2,54,13,392/- as determined by the order under Section 74(9) of the Act, has been blocked. The petitioner moved an application to unlock the Electronic Credit Ledger which has been rejected by the impugned order dated 04.04.2022 under Rule 86A. The court observed that the impugned order has been passed by the respondent no.3, who in view of the Circular dated 23.11.2021; is not authorized officer. Thus, prima facie the impugned order appears to be not only arbitrary, illegal, but also without authority of law and abuse of the process of law.

Held that:- The Hon’ble High Court directed the respondent nos. 2,3, and 4 to file their counter affidavits by means of personal affidavits within three days, failing which the respondent no.4 shall remain personally present before this Court and shall show cause. In their counter affidavits, the respondents shall also show cause as to why exemplary cost may not be imposed upon them for arbitrary exercise of power and abuse of the process of law and for harassment of the petitioner. Put up as a fresh case before the appropriate bench on 12.07.2022.