Electronic credit ledger restriction under GST rules cannot continue beyond one year; coercive steps stayed pending jurisdiction review.

The electronic credit ledger restriction under Rule 86A(3) of the CGST/SGST Rules, 2017 could not continue beyond one year, and the restraint was directed to be withdrawn. Interim protection was also granted against coercive steps on the basis of the impugned adjudication order until the returnable date, while the respondents were required to file an affidavit addressing the jurisdictional objections and the legality of the search proceedings.

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Issues: Whether the restriction on the electronic credit ledger could continue beyond one year under Rule 86A(3) of the CGST/SGST Rules, 2017; and whether interim protection was warranted against coercive steps on the basis of the impugned adjudication order while the respondents filed an affidavit on jurisdiction and the search proceedings.

Outcome: The restriction on the electronic credit ledger was directed to be withdrawn, and the respondents were restrained from taking coercive steps till the returnable date. The respondents were also directed to file an affidavit on the points raised regarding jurisdiction and the legality of the search proceedings.

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