Rule 86A of the CGST Rules, 2017 —- Blocking of ITC — The applicant prayed for directing the respondent to unblock the ITC; to direct the respondent to allow petitioner to raise E-way bills so that business may continue; to direct the respondent to allow filing of GSTR-3B for the period April, 2021-22 and subsequent returns without payment of negative ITC due to blocking of ITC by the respondents. The court relied on the judgment of this Court in the case of Samay Alloys India Pvt. Ltd. vs. State of Gujarat decided on 3rd February 2022.

Held that:- The Hon’ble High Court allowed the application and directed the respondents to withdraw the negative block of the electronic credit ledger at the earliest. Whatever balance remained in the electronic credit ledger after the removal of the balance to negative figure, the same shall not be utilized by the writ applicant till the SCN is issued. Once the negative block is removed, the writ applicant shall proceed to file his returns.