Unblocking of input tax credit requires fresh consideration and hearing before a decision under Rule 86A

Pending requests for unblocking input tax credit blocked under Rule 86A of the U.P. GST Rules must be decided afresh where the authority has not yet taken a final view. The Allahabad HC noted the challenge to the blocking order on the basis of alleged absence of recorded satisfaction and timing concerns, and directed that the pending application be disposed of expeditiously in accordance with law after giving the petitioner an opportunity of hearing. The petitioner was also allowed to urge all grounds raised in the writ petition before the authority.

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Issues: Whether the pending request for unblocking of input tax credit blocked under Rule 86A of the U.P. GST Rules required a fresh decision by the authority after granting the petitioner an opportunity of hearing.

Analysis: The petition challenged the blocking of input tax credit on the ground that the order did not record the requisite satisfaction and was passed before the date fixed in the panchnama for production of records. The Court noted that the petitioner's application for unblocking remained pending and that the respondents had proceeded on the basis of subsequent events. In these circumstances, the Court considered it appropriate to ensure an expeditious decision on the pending application in accordance with law, after affording the petitioner an opportunity to be heard and to urge all grounds raised in the writ petition.

Conclusion: The pending application for unblocking of the input tax credit was directed to be decided afresh in accordance with law after hearing the petitioner.

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