Electronic credit ledger blockage under GST found distinct from debit entry, leaving the writ grievance without basis.

The writ grievance concerned an alleged debit entry in the electronic credit ledger under Rule 86A of the CGST Rules and Section 86A of the CGST Act, with the petitioner claiming that a negative balance had been created. The respondents clarified that the amount had only been blocked and was not debited from the ledger. On that clarification, the factual foundation of the petition ceased to exist, so no further adjudication was required. The Court also noted that the broader issue relating to negative lien had already arisen in earlier proceedings and was pending before a Larger Bench. The petition was therefore disposed of.

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Issues: Whether the writ petition survived after the respondents clarified that the amount in dispute had been blocked and not debited from the electronic credit ledger under Section 86A of the Central Goods and Services Tax Act, 2017 and Rule 86A of the Central Goods and Services Tax Rules, 2017.

Analysis: The petition was founded on the allegation that the respondents had made a debit entry of Rs. 46,01,645/- and thereby created a negative balance in the electronic credit ledger. Upon instructions, the respondents clarified that the amount had been blocked and not debited. In view of that clarification, the basis of the grievance raised in the petition no longer survived. The Court also noticed that the broader question regarding negative lien had already been considered in earlier proceedings and was pending reference before a Larger Bench.

Conclusion: The petition did not warrant further adjudication and stood disposed of.

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