Blocked input tax credit under Rule 86A requires objections before the authorised officer and a reasoned time-bound decision.

Rule 86A(2) permits debit of the electronic credit ledger once the disqualifying conditions cease to exist, and the aggrieved registered person should first place objections before the authorised officer. The officer must examine those objections and pass a speaking, reasoned order within the prescribed time. In this framework, petitioners whose input tax credit was blocked were allowed to submit objections to the competent authority, which was directed to decide the matter in accordance with law within the stipulated period.

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Issues: Whether the petitioners, whose input tax credit had been blocked, were entitled to approach the authorised officer under Rule 86A(2) for consideration of their objections and a reasoned decision within a fixed time.

Analysis: Rule 86A(2) empowers the Commissioner or the authorised officer to permit debit of the electronic credit ledger once the disqualifying conditions no longer exist. Reading this provision with the departmental guidelines, the proper course is for the aggrieved registered person to first submit objections before the authorised officer. The authority is then required to examine the objections and decide them by a speaking and reasoned order within a time-bound period.

Conclusion: The petitioners were permitted to place objections before the competent authority, and the authority was directed to decide them in accordance with law within the stipulated period.

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