Rule 86A input tax credit blocking must be reconsidered when the supplier's updated GST registration record was ignored.

An input tax credit blocking order under Rule 86A was challenged on the basis that it proceeded on an outdated assumption that the supplier was operating from an old address. The material showed that the supplier had already applied to amend the core registration field to shift the place of business before the order, and the GSTN communication confirming the change came later. On that basis, the order was treated as having been passed without the updated factual position. The affected party was directed to seek recall before the same authority, which must verify the GSTN record and pass a reasoned order expeditiously on the current registration particulars.

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Issues: Whether the order blocking input tax credit under Rule 86A of the Uttar Pradesh Goods and Services Tax Rules, 2017, based on the supplier being found at an old address, warranted interference and recall consideration.

Analysis: The blocking order rested on the assumption that the supplier was non-existent at the disclosed place of business. The materials placed before the Court showed that the supplier had already sought amendment of the core registration field to shift the place of business from Hapur to Ghaziabad before the impugned order was passed, and the GSTN communication recording that change was issued later. On that basis, the order appeared to have been passed without the updated factual position and was treated as ex parte. In those circumstances, the writ petition was not kept pending and the petitioner was directed to seek recall before the same authority, which was required to verify the GSTN record and pass a reasoned order expeditiously.

Conclusion: The blocking order was not finally quashed in the writ proceedings, and the petitioner was left to pursue recall before the authority with a direction for fresh consideration on verified facts.

Final Conclusion: The matter was disposed of by requiring the tax authority to reconsider the blocking order after verifying the updated registration particulars from GSTN.

Ratio Decidendi: Where an adverse GST order is passed on an outdated factual assumption about the supplier's place of business, the affected party may be directed to seek recall and the authority must re-examine the matter on verified current records before maintaining the restraint.

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