Rule 86A of the CGST Rules, 2017 — Blocking of ITC – The intra-Court appeal is directed against the order dated 11th May, 2022, whereby, the prayer for interim relief was not granted by the learned Single Bench. The petitioner prayed to withdraw the blocking of the electronic credit ledger and restoration of the ITC. The court observed that such direction cannot be granted at this stage as the appellant does not know as to what are the reasons, which weighed in the mind of the appropriate authority before passing the order blocking the electronic credit ledger.

Held that:- The Hon’ble High Court directed the appropriate authority to intimate to the appellant within ten days, the reasons for which the electronic credit ledger of the appellant was blocked. Thereafter, the appellant is entitled to file his objections within seven days, after which the concerned authority shall afford an opportunity of personal hearing to the appellant and pass a speaking order on merits and in accordance with law, within a period of two weeks after PH.