Time-bound blockage of Electronic Credit Ledger lapses after one year unless renewed by a fresh order.

Rule 86A(3) limits blocking of an Electronic Credit Ledger to one year, and the blockage lapses automatically on expiry of that period. Continued restraint after the statutory period is impermissible unless a fresh order is passed, so the assessee must be allowed to utilise the available input tax credit once the time limit ends. The stated conclusion is that the ledger had to be unblocked after one year and the writ-applicant was entitled to use the credit.

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Issues: Whether the Electronic Credit Ledger could remain blocked after expiry of the one-year period prescribed under Rule 86A(3) of the GST Rules.

Analysis: Rule 86A(3) permits blocking of the Electronic Credit Ledger only for the prescribed period of one year. On expiry of that period, the blockage ceases to have effect automatically and the assessee must be allowed to utilise the available input tax credit unless a fresh order is passed. Continued restraint beyond the statutory period is without discretion and is inconsistent with the rule.

Conclusion: The Electronic Credit Ledger had to be unblocked after expiry of one year, and the writ-applicant was entitled to use the available credit.

Ratio Decidendi: A blocking order under Rule 86A is strictly time-bound, and upon expiry of the prescribed period it lapses automatically unless renewed by a fresh order.

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