https://www.taxtmi.com/caselaws?id=775810 The HC upheld the constitutional validity of Rule 86A of the CGST Rules, 2017, which allows blocking of Input Tax Credit (ITC) without prior hearing if there is reason to believe the credit was fraudulently availed or is ineligible. The court held that post-decisional hearing under Rule 86A(2) satisfies natural justice, as immediate action is necessary to prevent recovery difficulties. The blocking period is limited to one year, and the rule permits objections and subsequent lifting of the block upon satisfaction of the authority. The petitioner's objections under Rule 86A(2) must be decided expeditiously by the Commissioner. The HC directed the competent authority to pass a reasoned order on lifting the ITC block within 15 days, disposing of the writ petition accordingly. en-us Fri, 25 Jul 2025 00:00:00 +0530 Thu, 31 Jul 2025 08:18:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775810 The HC upheld the constitutional validity of Rule 86A of the CGST Rules, 2017, which allows blocking of Input Tax Credit (ITC) without prior hearing if there is reason to believe the credit was fraudulently availed or is ineligible. The court held that post-decisional hearing under Rule 86A(2) satisfies natural justice, as immediate action is necessary to prevent recovery difficulties. The blocking period is limited to one year, and the rule permits objections and subsequent lifting of the block upon satisfaction of the authority. The petitioner's objections under Rule 86A(2) must be decided expeditiously by the Commissioner. The HC directed the competent authority to pass a reasoned order on lifting the ITC block within 15 days, disposing of the writ petition accordingly. Case-Laws GST Fri, 25 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775810