https://www.taxtmi.com/caselaws?id=763933 The Delhi HC ruled on negative blocking of Electronic Credit Ledger under Rule 86A of CGST Rules. Following the precedent in Best Crop Science Pvt. Ltd., the court held that Rule 86A(1) does not permit orders requiring taxpayers to replenish their ECL with valid ITC to compensate for previously used ITC that authorities believe was fraudulently availed or ineligible. Such interpretation would effectively constitute a tax recovery order, forcing taxpayers to make larger cash outflows by denying utilization of validly availed ITC. The court determined that negative blocking under these circumstances cannot be sustained and allowed the petition in part. en-us Wed, 04 Dec 2024 00:00:00 +0530 Mon, 21 Jul 2025 14:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763933 The Delhi HC ruled on negative blocking of Electronic Credit Ledger under Rule 86A of CGST Rules. Following the precedent in Best Crop Science Pvt. Ltd., the court held that Rule 86A(1) does not permit orders requiring taxpayers to replenish their ECL with valid ITC to compensate for previously used ITC that authorities believe was fraudulently availed or ineligible. Such interpretation would effectively constitute a tax recovery order, forcing taxpayers to make larger cash outflows by denying utilization of validly availed ITC. The court determined that negative blocking under these circumstances cannot be sustained and allowed the petition in part. Case-Laws GST Wed, 04 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763933