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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S.R.KRISHNA KUMAR
Pooja Granites – Appellant
Versus
Assistant Commissioner Of Central Tax Lakshmipuram Division – Respondent
ORDER :
S.R. Krishna Kumar, J.
In this petition, petitioner seeks for the following reliefs:-
(A) Declare that the Impugned blocking of the Petitioner’s Electronic Credit Ledger on 12.09.2025 vide Reference No BL2909250000233, insofar as it purports to restrict the utilization of Input Tax Credit beyond the available credit and creates a negative balance, is ultra vires Rule 86A of the CGST Rules, 2017 ( Annexure A ) and ( Annexure A1 )
(B) Consequently, issue a writ of mandamus or direction in the nature of mandamus directing the Respondent No.1 to forthwith unblock and restore the Input Tax Credit wrongly debited to the extent of Rs. 3,44,094/- (Rupees Three Lakhs Forty Four Thousand Ninety Four only) in the Petitioner’s Electronic Credit Ledger and to permit the Petitioner to utilize the same for discharge of its lawful tax liabilities;
(C) Issues of writ of certiorari or in the nature of certiorari to set aside Shoe Cause Notice dated 17.10.2025 bearing File No. GEXCOM/AE/INV/GST/8706/2025- AE-O/o Pr COMMR-CGST- Mysuru, Show Cause Notice Sl., No. GEXCOM/AE/INV/GST/20/2025-26 and DIN: 20251057YY0000212262 issued to the Petitioner (Annexure-J); and
D. Pass any such other orders and dir
The authorities must provide independent reasons and evidence to block a taxpayer's Electronic Credit Ledger under Rule 86A; reliance on borrowed satisfaction is impermissible.
The court emphasized that blocking an Electronic Credit Ledger under Rule 86A requires independent inquiry and valid reasons to believe that ITC is fraudulently availed, which were not present in thi....
The court emphasized that for blocking an Electronic Credit Ledger under Rule 86A, authorities must base their decision on independent assessment rather than borrowed reasoning, ensuring adherence to....
The court held that blocking a taxpayer's Electronic Credit Ledger requires a valid independent assessment and adherence to natural justice, specifically pre-decisional hearings and recording of reas....
The invocation of Rule 86A to block an Electronic Credit Ledger requires the authorities to fulfill strict preconditions, including providing valid reasons based on independent inquiry, and cannot re....
Blocking of Electronic Credit Ledgers requires adherence to procedural fairness and independent justification, as reliance on borrowed satisfaction is impermissible under Rule 86A of the CGST Rules.
The blocking of Electronic Credit Ledger under Rule 86A must be based on independent analysis and cannot rely solely on borrowed satisfaction; pre-decisional hearing is mandatory.
The blocking of an electronic credit ledger under Rule 86A of the CGST Rules requires independent reasoning and a proper legal basis; actions taken on borrowed satisfaction without pre-decisional hea....
Blocking of an electronic credit ledger under Rule 86A requires independent verification and justifiable reasons, making pre-decisional hearings essential before such actions.
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