Electronic Credit Ledger blocking under Rule 86A ends after one year, requiring automatic unblocking absent a fresh lawful order.

Rule 86A permits blocking of the Electronic Credit Ledger only for the statutory period of one year; on expiry, the blockage ceases to operate and the ledger stands automatically unblocked unless a fresh order is passed in accordance with law. After the statutory life of the blocking order ended, the authority had no discretion to continue ? no, avoid Hindi. The assessee was therefore entitled to avail the available input credit, and relief followed.

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Issues: Whether the Electronic Credit Ledger, blocked under Rule 86A, was required to be unblocked once the prescribed one-year period had expired.

Analysis: The rule permits blocking of the Electronic Credit Ledger only for the statutory period of one year. On expiry of that period, the blockage ceases to operate and the ledger stands automatically unblocked unless a fresh order is passed in accordance with law. Once the statutory life of the blocking order ended, the authority had no further discretion to prevent the assessee from availing the available input credit.

Conclusion: The ledger was required to be unblocked after the expiry of one year, and the writ applicant was entitled to relief.

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