Input tax credit blocking under Rule 86A must be reconsidered when a taxpayer's request for lifting the restriction remains undecided.

Rule 86A permits blocking of input tax credit in the electronic credit ledger, but Rule 86A(2) allows debit to be permitted once the disallowance conditions no longer exist. Where the taxpayer has already made a representation seeking lifting of the restriction and no decision has been taken, the matter requires administrative consideration rather than continued inaction. The Madras HC directed the respondent to pass appropriate orders on the representation within two weeks, thereby requiring prompt disposal of the request for removal of the Rule 86A restriction.

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Issues: Whether the blocking of input tax credit under Rule 86A should continue when the petitioner's representation seeking lifting of the restriction had not been decided.

Analysis: The order records that Rule 86A(2) enables the Commissioner or the authorised officer to permit debit of the electronic credit ledger once the disallowance conditions no longer exist. Since the petitioner had submitted a representation and no decision had yet been taken on it, the matter required administrative consideration.

Outcome: The writ petition was disposed of with a direction to the second respondent to pass appropriate orders on the petitioner's representation within two weeks.

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