JUDGMENT

Manmohan, J. - C.M.No.45404/2021

Exemption allowed, subject to all just exceptions.

Accordingly, the application stands disposed of.

W.P.(C) No.14422/2021

1. Present writ petition has been filed challenging Rule 86A of the CGST Rules as illegal, arbitrary and bad in law. Petitioner also seeks a direction declaring the continuance of blocking of petitioner’s ITC of INR 8,72,22,741/- beyond a period of one year as illegal on account of violation of express mandate of Rule 86A(3) and to unblock and restore the credit of the petitioner.

2. Learned counsel for the petitioner states that the respondent had not given any reason to the petitioner justifying the blocking of credit and, thus, the impugned action is in violation of the principles of natural justice. He states that Rule 86A(3) of the CGST Rules, 2017 mandates that any restriction on the usage of ITC shall cease to have effect after the expiry of a period of one year from the date of imposing of such restriction. However he points out that in the present case, despite the period of one year having lapsed on 25th January, 2021, the respondent has not unblocked the ITC.

3. Learned Counsel for the petitioner states that despite