https://www.taxtmi.com/caselaws?id=759299 Interpretation of Rule 86A of the CGST Rules establishes that the Commissioner or an authorised officer may temporarily disallow debits from an assessee's Electronic Credit Ledger only to the extent of input tax credit actually available in the ledger at the time of the order; the power is protective and not a mechanism for recovery. An order under Rule 86A may be passed without prior show cause if there are reasons to believe ITC was fraudulently availed or is ineligible, but any determination of tax, interest or penalty must follow the regular assessment provisions. Orders blocking amounts in excess of the ECL balance are impermissible and are liable to be set aside. en-us Tue, 24 Sep 2024 00:00:00 +0530 Mon, 30 Mar 2026 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759299 Interpretation of Rule 86A of the CGST Rules establishes that the Commissioner or an authorised officer may temporarily disallow debits from an assessee's Electronic Credit Ledger only to the extent of input tax credit actually available in the ledger at the time of the order; the power is protective and not a mechanism for recovery. An order under Rule 86A may be passed without prior show cause if there are reasons to believe ITC was fraudulently availed or is ineligible, but any determination of tax, interest or penalty must follow the regular assessment provisions. Orders blocking amounts in excess of the ECL balance are impermissible and are liable to be set aside. Case-Laws GST Tue, 24 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759299