Writ jurisdiction and blocked input tax credit cannot be used to bypass statutory appeal where GST fraud facts are disputed.

Where disputed GST fraud allegations, including fake invoices and alleged absence of movement of goods, are raised, the High Court will not ordinarily examine the merits of blocking input tax credit or the adjudication order in writ jurisdiction. Rule 86A blocking is a temporary measure valid for one year, and no prior hearing is statutorily mandated before such action. The existence of an efficacious statutory appeal under Section 107 made writ intervention inappropriate, so the petitioner was relegated to the appellate remedy.

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Issues: Whether the challenge to the order blocking input tax credit and the adjudication order under the GST laws could be entertained in writ jurisdiction in the face of disputed facts and availability of statutory appeal.

Analysis: The petitioner assailed the blocking of credit under Rule 86A(1) and the adjudication order under Section 74, contending absence of an effective hearing and illegality in the exercise of power. The impugned order recorded appearance of counsel and explanation of objections, and the Court held that whether an effective opportunity was in fact availed involved disputed facts not suitable for adjudication under Article 226. The Court further held that the order under Rule 86A(1) was a temporary measure valid for one year, that no statutory mandate required a prior hearing before such blocking, and that the petitioner had an efficacious statutory appeal under Section 107. In view of the allegations of fake invoices and transactions without actual movement of goods, the matter was held to lie within the domain of the statutory authorities.

Conclusion: Writ interference was declined and the petitioner was relegated to the statutory appellate remedy.

Ratio Decidendi: Where disputed factual allegations of fraud under the GST regime are raised and an efficacious statutory appeal is available, the High Court will not ordinarily exercise writ jurisdiction to examine the merits of blocking of credit or adjudication orders.

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