https://www.taxtmi.com/caselaws?id=783095 HC held that Rule 86A of the GST Rules, 2017 permits only temporary restriction on utilisation of legitimately available ITC in the ECL where the Commissioner has reason to believe that credit is fraudulently availed or ineligible. Prior notice or show cause notice is not mandatory as the provision addresses emergent situations. However, HC ruled that "negative blocking" is impermissible; the department cannot block an amount exceeding the credit actually available in the ECL. For any further recovery, authorities must invoke appropriate statutory mechanisms under Sections 73 or 74 of the CGST/PGST Acts. Consequently, the impugned blocking in excess of available credit was quashed and the petition was allowed. en-us Wed, 19 Nov 2025 00:00:00 +0530 Tue, 09 Dec 2025 08:42:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783095 HC held that Rule 86A of the GST Rules, 2017 permits only temporary restriction on utilisation of legitimately available ITC in the ECL where the Commissioner has reason to believe that credit is fraudulently availed or ineligible. Prior notice or show cause notice is not mandatory as the provision addresses emergent situations. However, HC ruled that "negative blocking" is impermissible; the department cannot block an amount exceeding the credit actually available in the ECL. For any further recovery, authorities must invoke appropriate statutory mechanisms under Sections 73 or 74 of the CGST/PGST Acts. Consequently, the impugned blocking in excess of available credit was quashed and the petition was allowed. Case-Laws GST Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783095