TaxTMI 
TaxTMI 
2024 (10) TMI 491
X X X X Extracts X X X X
X X X X Extracts X X X X
....riefly stated, the facts giving rise to the present appeals are as follows:- The appellants are registered under GST and deal with Lead, lead scrap and other incidental businesses and make purchases from dealers registered under GST and accordingly, availed input tax credit (for short 'the ITC') on such purchases and the said ITC was available in the Electronic Credit Ledgers (for short, "ECL") of the appellants. By the orders dated 27.06.2023 impugned in the instant writ petitions, the ECL of the appellants were blocked by the respondents by invoking Rule 86A of the Central Goods and Services Tax Rules, 2017 (for short 'the CGST Rules') which led to the appellants challenging the same by way of the instant writ petitions. The writ petitions were opposed and contested by the respondents / revenue. By the impugned common order, the learned Single Judge rejected the various contentions / grounds urged by the appellants and disposed of the petitions by issuing certain directions. Aggrieved by the impugned common order, appellants are before this Court by way of the present appeals. 3. We have heard Sri. V. Raghuraman, learned Senior Counsel and Amicus Curiae and learned counsel ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....udulent or ineligible ITC. (iv) Learned Senior counsel would also submit that in the instant cases, the ECL of the appellants had been blocked by the respondents without verifying the genuineness of the transaction and a bona fide purchaser cannot be denied ITC on account of a supplier's default and the recipient cannot be made to suffer denial of ITC for the wrong doings of the supplier. (v) It was submitted that blocking of ECL would defeat the principles and purpose of value added tax and would lead to a cascading effect thereby resulting in irreparable injury and hardship to the appellants especially when ITC was a valuable right which cannot be confiscated in a manner opposed to law. It is also pointed out that the procedure prescribing the requirements for blocking ECL has been explained by the respondents themselves in the CBEC Circular dated 02.11.2021 which would indicate that the impugned orders are contrary to the said circular also. (vi) That Rule 86A was introduced pursuant to GST council discussions to curb the menace of fake invoices and therefore, a mechanism to block input tax credit was devised. (vii) Rule 86A specifies the cond....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tronic credit ledger in respect of a registered person, only after proper application of mind considering all the facts of the case, including the nature of prima facie fraudulently availed or ineligible ITC and whether the same is covered under the grounds mentioned in Rule 86A(1). (xii) The power of disallowing debit of amount from electronic credit ledger must not be exercised in a mechanical manner and careful examination of all the facts of the case is important to determine case(s) fit for exercising power under Rule 86A. The remedy of disallowing debit of amount from electronic credit ledger being, by its very nature, extraordinary, has to be resorted to with utmost circumspection and with maximum care and caution. It contemplates an objective determination based on intelligent care and evaluation as distinguished from a purely subjective consideration of suspicion. The reasons are to be on the basis of material evidence available or gathered in relation to fraudulent availment of input tax credit or ineligible input tax credit availed as per the conditions/grounds in Rule 86A. (xiii) Further, the impugned orders have been passed based on the communication ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roviding pre-decisional hearing and without complying with the requirements / parameters of Rule 86A, the impugned orders passed by the respondents - revenue deserved to be set aside and failure to appreciate this by the learned Single Judge has resulted in erroneous conclusion warranting interference in the present appeals. In support of his submissions, learned Senior counsel has relied upon the following judgments:- 1. Rule 86A of CGST Rule, 2017 2. Agenda of 38th GST Council Meeting 3. Para 35.2 of Minutes of 38th GST Council 4. Auto and General Engineering Citizen Society Vs State of Andhra Pradesh - AIR 1988 AP 266; 5. State Bank of Patiala Vs. S.K. Sharma - (1996) 3 SCC 364; 6. Canara Bank Vs. Devasis Das - (2003) 4 SCC 557; 7. Charan Lal Sahu Vs. Union of India - AIR 1990 SC 1480; 8. Sara India (Firm) Vs. Commissioner of Income Tax - 2008(226)ELT 22(SC); 9. C.B. Gautham Vs. Union of India - 1992 (65) taxman 440) (SC); 10. KI Shephard Vs. Union of India - (1987) 4 SCC 431; 11. HL Trehan Vs. Union of India - (1989) 1 SCC 764; 12. Dee Vee Project Ltd Vs. Government of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Credit Ledger under Rule 86A of the CGST Rules? 2) Whether the respondents-revenue were justified in passing the impugned orders blocking the Electronic Credit Ledger of the Appellants by invoking Rule 86A of the CGST Rules? 3) Whether the impugned order passed by the learned Single Judge warrants interference in the present appeals? Re: Point No.1 8. Before adverting to the submissions referred to supra, it would be apposite to state that the meaning, scope and ambit of an electronic credit ledger, utilization of ITC etc., by a registered dealer has been succinctly explained by the Division Bench of Gujarath High Court in Samay Alloys' case supra, wherein it was held as under:- 9. Before we proceed to discuss the scope and applicability of rule 86A, we must give a fair idea as to what is an electronic credit ledger in the GST. One of the benefits under the GST regime is that the payment of tax under the different heads is done online. To make the GST payment process convenient, each registered taxpayer gets two electronic ledgers. These ledgers include ; (1) electronic liability register and (2) electronic credit ledger. The electronic liability r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e ITC standing under the SGST is used to set off the remaining IGST output liability. 16. Furthermore, no set off is available between the CGST and SGST. 17. Hence, from the above, it is clear how the electronic credit ledger is used while making the tax payment. What is electronic credit ledger in GST ? 18. The electronic credit ledger reflects the amount of input-tax credit available to the taxpayer. Thus, every claim of input-tax credit of the registered taxpayer eligible for claiming such a credit is credited to this ledger. The amount available in the electronic credit ledger is utilized in making payments towards the outward tax liability by the registered taxpayer. 19. The electronic credit ledger shall be maintained in the form GST PMT-02. This form shall be maintained on the common portal for every registered person eligible to claim input-tax credit under GST Act. Every claim of the input-tax credit is credited to the electronic credit ledger. 8.1 In this context, it would be relevant to extract Rule 86A of the CGST Rules, which reads as under:- 86A. Conditions of use of amount available in electronic credit ledger:....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hen the person is not eligible and several specific instances are set out for this purpose - where the person issuing the invoice is non-existent or is not conducting his business or is without receipt of goods or services or where the supplier has not paid tax to the government or the registered person availing credit himself is non-existent or does not possess the required documentation to avail credit. 8.3 The first question that arises for consideration is as to whether the respondents were justified in not providing/granting a pre-decisional hearing before blocking the ECL of the appellants and whether a post decisional hearing was sufficient in the facts and circumstances of the instant cases. In this context, a plain/bare reading of Rule 86A will indicate that there is absolutely no express provision for compliance with principles of natural justice; however, there could arise occasions/situations when principles of natural justice can be read into statutory provisions though they are not expressly present in the provisions. 8.4 In CB Gautam's case supra, the Constitution Bench of the Apex Court held as under: "28. In the light of what we have observed above, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on arises where an order for compulsory purchase is made and such an imputation casts a slur on the parties to the agreement to sell leads to the conclusion that, before such an imputation can be made against the parties concerned, they must be given an opportunity to show cause that the undervaluation in the agreement for sale was not with a view to evade tax. Although Chapter XX-C does not contain any express provision for the affected parties being given an opportunity to be heard before an order for purchase is made under section 269UD, not to read the requirement of such an opportunity would be to give too literal and strict an interpretation to the provisions of Chapter XX-C and, in the words of judge Learned Hand of the United States of America " to make a fortress out of the dictionary. " Again, there is no express provision in Chapter XX-C barring the giving of a show cause notice or reasonable opportunity to show cause nor is there anything in the language of Chapter XX-C which could lead to such an implication. The observance of the principles of natural justice is the pragmatic requirement of fair play in action. In our view, therefore, the requirement of an opportunity....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h the order on the affected party. We are, of the view that the reasons for the order must be communicated to the affected party. 8.5 In Sahara India Firm's case supra, the Apex Court held that before ordering special audit of the books of the assessee, the assessee was to be heard as that would entail civil consequences as under: 11. Rules of " natural justice" are not embodied rules. The phrase " natural justice" is also not capable of a precise definition. The underlying principle of natural justice, evolved under the common law, is to check arbitrary exercise of power by the State or its functionaries. Therefore, the principle implies a duty to act fairly, i.e., fair play in action. As observed by this court in A. K. Kraipak v. Union of India, the aim of rules of natural justice is to secure justice or to put it negatively to prevent miscarriage of justice. These rules can operate only in areas not covered by any law validly made. They do not supplant the law but supplement it. (Also see : ITO v. Madnani Engineering Works Ltd) 12. In Swadeshi Cotton Mills Co. Ltd. v. Union of India, R. S. Sarkaria J., speaking for the majority in a three-judge Bench, lucidl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....asi-judicial and administrative decisions was perceptively mitigated and it was held that even an administrative order or decision in matters involving civil consequences, has to be made consistently with the rules of natural justice. Since then the concept of natural justice has made great strides and is invariably read into administrative actions involving civil consequences, unless the statute, conferring power, excludes its application by express language. 14. Recently, in Canara Bank v. V. K. Awasthy, the concept, scope, history of development and significance of the principles of natural justice have been discussed in extenso, with reference to earlier cases on the subject. Inter alia, observing that the principles of natural justice are those rules which have been laid down by the courts as being the minimum protection of the rights of the individual against the arbitrary procedure that may be adopted by a judicial, quasi-judicial and administrative authority while making an order affecting those rights, the court said: "Concept of natural justice has undergone a great deal of change in recent years. Rules of natural justice are not rules embodied always ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sioner**, explaining as to what is meant by the expression " civil consequence", Krishna Iyer J., speaking for the majority, said : "'Civil consequences' undoubtedly cover infraction of not merely property or personal rights but of civil liberties, material deprivations and non-pecuniary damages. In its comprehensive connotation, everything that affects a citizen in his civil life inflicts a civil consequence." 18. The question in regard to the requirement of opportunity of being heard in a particular case, even in the absence of provision for such hearing, has been considered by this court on a number of occasions. In Olga Tellis v. Bombay Municipal Corporation* while dealing with the provisions of section 314 of the Bombay Municipal Corporation Act, 1888, which confers discretion on the Commissioner to get any encroachment removed with or without notice, a Constitution Bench of this court observed as follows: "It must further be presumed that, while vesting in the Commissioner the power to act without notice, the Legislature intended that the power should be exercised sparingly and in cases of urgency which brook no delay. In all other cases, no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cause being given before an order for purchase by the Central Government is made by an appropriate authority under section 269UD must be read into the provisions of Chapter XX-C. There is nothing in the language of section 269UD or any other provision in the said Chapter which would negate such an opportunity being given. Moreover, if such a requirement were not read into the provisions of the said Chapter, they would be seriously open to challenge on the ground of violations of the provisions of article 14 on the ground of non-compliance with the principles of natural justice. The provision that when an order for purchase is made under section 269UD reasons must be recorded in writing is no substitute for a provision requiring a reasonable opportunity of being heard before such an order is made." 20. Dealing with the question whether the requirement of affording an opportunity of hearing is to be read into section 142 (2A), in Rajesh Kumar* it has been held that prejudice to the assessee is apparent on the face of the said statutory provision. It has been observed that on account of the special audit, the assessee has to undergo the process of further accounting despite t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....quence, but it cannot be said to be the sole civil or evil consequence flowing from directions under section 142 (2A). We are convinced that special audit has an altogether different connotation and implications from the audit under section 44AB. Unlike the compulsory audit under section 44AB, it is not limited to mere production of the books and vouchers before an auditor and verification thereof. It would involve submission of explanation and clarification which may be required by the special auditor on various issues with relevant data, document, etc., which, in the normal course, an assessee is required to explain before the Assessing Officer. Therefore, special audit is more or less in the nature of an investigation and in some cases may even turn out to be stigmatic. We are, therefore, of the view that even after the obligation to pay auditor' s fees and incidental expenses has been taken over by the Central Government, civil consequences would still ensue on the passing of an order for special audit. 8.6 In the light of the afore stated principles, we are of the view that though Rule 86A does not expressly/specifically provide for adherence to principles of natural ju....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, must be consistent with the rules of natural justice. As already noted above, the expression " civil consequences" encompasses infraction of not merely property or personal rights but of civil liberties, material deprivations and non-pecuniary damages. Anything which affects a citizen in his civil life comes under its wide umbrella. Accordingly, we reject the argument and hold that since an order under section 142 (2A) does entail civil consequences, the rule audi alteram partem is required to be observed. 23. We are also unable to persuade ourselves to agree with the proposition canvassed by learned counsel for the Revenue that since a post-decisional hearing in terms of sub-section (3) of section 142 is contemplated, the requirement of natural justice is fully met. Apart from the fact that ordinarily a post-decisional hearing is no substitute for pre-decisional hearing, even from the language of the said provision it is plain that the opportunity of being heard is only in respect of the material gathered on the basis of the audit report submitted under sub-section (2A) and not on the validity of the original order directing the special audit. It is well-settled that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Judge of the Kerala High Court had proposed a post-amalgamation hearing to meet the situation but that has been vacated by the Division Bench. For the reasons we have indicated, there is no justification to think of a post-decisional heading. On the other hand the normal rule should apply. 8.10 In H.L. Trehan's case supra, the Apex Court followed the above dictum and held as under: 12. It is, however, contended on behalf of CORIL that after the impugned circular was issued, an opportunity of hearing was given to the employees with regard to the alterations made in the conditions of their service by the impugned PG NO 931 circular. In our opinion, the post-decisional opportunity of hearing does not sub serve the rules of natural justice. The authority who embarks upon a post-decisional hearing will naturally proceed with a closed mind and there is hardly any chance of getting a proper consideration of the representation at such a post-decisional opportunity. In this connection, we may refer to a recent decision of this Court in K.I. Shephard & Ors. v. Union of India & Ors., JT 1987 (3) 600. What happened in that case was that the Hindustan Commercial Bank, The Bank of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e ECL of the appellants which would entail and visit them with serious civil consequences; so also, in the absence of extraordinary reasons or exceptional circumstances obtaining from the material available with them which would obviate or dispense with the requirement of pre-decisional hearing, it was also incumbent upon the respondents-revenue to provide/grant a pre-decisional hearing to the appellants before invoking Rule 86A and blocking the ECL of the appellants by passing the impugned orders which are vitiated and failure to appreciate this by the learned Single Judge has resulted in erroneous conclusion. 8.12 It is also significant to note that in the event the respondents-revenue had not provided/granted a pre-decisional hearing to the appellants before blocking its ECL by invoking Rule 86A, the only consequence flowing from the same would be that there would be a possibility of the appellants taking steps to utilizing/availing the ITC available in the ECL; the said process of the appellants utilizing/availing the ITC is not instantaneous/immediate unlike bank accounts, from which monies can be withdrawn, if the same are not attached and the said process culminating in t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the learned Single Judge noticed that 2 pre-requisites/conditions had to be satisfied/fulfilled before invocation of Rule 86A and blocking the ECL of the appellants and held as under: 18. The first requisite of the Rule which is required to be considered by the competent authority is with regard to the basis of material available before he taking any action for blocking of electronic credit ledger. The second pre-requisite is of recording the reasons in writing for invoking the powers under Rule 86A of the Rules of 2017. Unless the aforesaid two pre-requisites are fulfilled, the competent authority cannot invoke the powers under Rule 86A of the Rules of 2017 for the purpose of disallowing the debit of the determined amount to the electronic credit ledger or to block the electronic credit ledger even to the extent of amount fraudulently or wrongly availed by the petitioners/assessee. 9.1 However, the learned Single Judge came to the erroneous conclusion that the respondents-revenue had fulfilled/satisfied the aforesaid twin/dual pre-requisites/requirements viz., respondents had 'reasons to believe' which were based on cogent material available with them to invoke Rule 8....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ore of the following grounds: a) The credit is availed by the registered person on the invoices or debit notes issued by a supplier, who is found to be non-existent or is found not to be conducting any business from the place declared in registration. b) The credit is availed by the registered person on invoices or debit notes, without actually receiving any goods or services or both. c) The credit is availed by the registered person on invoices or debit notes, the tax in respect of which has not been paid to the government. d) The registered person claiming the credit is found to be non-existent or is found not to be conducting any business from the place declared in registration. e) The credit is availed by the registered person without having any invoice or debit note or any other valid document for it. 3.1.3 The Commissioner, or an officer authorised by him, not below the rank of Assistant Commissioner, must form an opinion for disallowing debit of an amount from electronic credit ledger in respect of a registered person, only after proper application of mind considering all the facts of the case, including the nature of pri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cer in writing on file, before he proceeds to disallow debit of amount from electronic credit ledger of the said person. 9.4 It is clear from the aforesaid CBIC Circular that the respondents-revenue must form an opinion for disallowing debit of an amount from electronic credit ledger in respect of a registered person, only after proper application of mind considering all the facts of the case, including the nature of prima facie fraudulently availed or ineligible input tax credit and whether the same is covered under the grounds mentioned in Rule 86A(1). As stated earlier, Rule 86A, which in effect is the power to block ECL is drastic in nature which creates a disability for the taxpayer to avail of the credit in ECL for discharge of his tax liability which he is otherwise entitled to avail and therefore, all the requirements of Rule 86A would have to be fully complied with before the power there under is exercised; when this Rule requires arriving at a subjective satisfaction which is evident from the use of words, "must have reasons to believe", the satisfaction must be reached on the basis of some objective material available before the authority and cannot be made on the fli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d principle of administrative law. On a perusal of the impugned orders, it is crystal clear that the order to block the ECL provisionally was out of the borrowed satisfaction of the respondent authorities rather than based on any independent analysis. 9.8 As stated supra, the impugned order discloses that the same has been passed mechanically and is based on borrowed satisfaction and does not meet the test of formation of an opinion of the Assessing Officer who seems to have been influenced by the findings of the Investigation Wing [i.e, Field visit report by the Asst. State Tax Officer, Vasco-D-Gama, (Goa)] and have not independently formed an opinion on the likely additions to be made during assessment proceedings. In the light of existence of a legal mandatory pre-requirement and precondition of recording of formation of opinion which is in pari-materia with "reasons to believe", it was incumbent upon the officer to arrive at his own satisfaction and not borrowed satisfaction by proper application of mind; the respondents have proceeded solely on the basis that the supplier has been found to be non-existent or not to be conducting any business from the place which it has obta....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 49. Now in this backdrop, it becomes necessary to emphasise that before the Commissioner can levy a provisional attachment, there must be a formation of "the opinion" and that it is necessary "so to do" for the purpose of protecting the interest of the government revenue. The power to levy a provisional attachment is draconian in nature. By the exercise of the power, a property belonging to the taxable person may be attached, including a bank account. The attachment is provisional and the statute has contemplated an attachment during the pendency of the proceedings under the stipulated statutory provisions noticed earlier. An attachment which is contemplated in Section 83 is, in other words, at a stage which is anterior to the finalisation of an assessment or the raising of a demand. Conscious as the legislature was of the draconian nature of the power and the serious consequences which emanate from the attachment of any property including a bank account of the taxable person, it conditioned the exercise of the power by employing specific statutory language which conditions the exercise of the power. The language of the statute indicates first, the necessity of the formation o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see can be levied. The Commissioner must be alive to the fact that such provisions are not intended to authorise Commissioners to make pre-emptive strikes on the property of the assessee, merely because property is available for being attached. There must be a valid formation of the opinion that a provisional attachment is necessary for the purpose of protecting the interest of the government revenue. 51. These expressions in regard to both the purpose and necessity of provisional attachment implicate the doctrine of proportionality. Proportionality mandates the existence of a proximate or live link between the need for the attachment and the purpose which it is intended to secure. It also postulates the maintenance of a proportion between the nature and extent of the attachment and the purpose which is sought to be served by ordering it. Moreover, the words embodied in sub-section (1) of Section 83, as interpreted above, would leave no manner of doubt that while ordering a provisional attachment the Commissioner must in the formation of the opinion act on the basis of tangible material on the basis of which the formation of opinion is based in regard to the existence of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... satisfaction/opinion, the Commissioner may exercise the powers under Section 45 of the VAT Act." 72. It is evident from the facts noted above that the order of provisional attachment was passed before the proceedings against the appellant were initiated under Section 74 of the Hpgst Act. Section 83 of the Act requires that there must be pendency of proceedings under the relevant provisions mentioned above against the taxable person whose property is sought to be attached. We are unable to accept the contention of the respondent that merely because proceedings were pending/concluded against another taxable entity, that is, GM Powertech, the powers of Section 83 could also be attracted against the appellant. This interpretation would be an expansion of a draconian power such as that contained in Section 83, which must necessarily be interpreted restrictively. Given that there were no pending proceedings against the appellant, the mere fact that proceedings under Section 74 had concluded against GM Powertech, would not satisfy the requirements of Section 83. Thus, the order of provisional attachment was ultra vires Section 83 of the Act. 73. On 1-3-2021, the appella....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er:- "8. As held by the Apex Court in the aforesaid decision, mere apprehension on the part of the respondents that huge tax demands are likely to be raised on completion of assessment is not sufficient for the purpose of passing a provisional order of attachment. It has also been held that apart from the fact that a writ petition under Article 226 of the Constitution of India challenging the provisional attachment order was maintainable, having regard to the fact that the provisional attachment order of a property of a taxable person including the bank account of such person is draconian in nature and the conditions which are prescribed by the statute for the valid exercise of power must be strictly fulfilled, the exercise of power for order of provisional attachment must necessarily be preceded by formation of an opinion by the authorities that it is necessary to do so for the purpose of protecting the interest of Government revenue. Before the order of provisional attachment, the Commissioner must form an opinion on the basis of the tangible material available for attachment that the assessee is not likely to fulfil the demand payment of tax and it is therefore necessar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly indicate that the same is arbitrary and reflects premeditated conclusion without recording either an opinion or necessary to attach the property; the doctrine of proportionality which is implicated in the purpose and necessity of provisional attachment mandates the existence of a proximate or a live link between the need for the attachment and the purpose which it is intended to secure. 13. Further, mere apprehension that huge tax demands are likely to be raised on completion of assessment is not sufficient for the purpose of passing a provisional attachment order and the exercise of the same must necessarily be preceded by the formation of an opinion that it was necessary to do so for the purpose of protecting the interest of Government revenue, that too on the basis of tangible material that the petitioner was not likely to fulfil the demand and on the other hand, was likely to defeat the demand, which is conspicuously missing and absent in the impugned order. 14. The impugned order also discloses that the same has been passed mechanically and is based on borrowed satisfaction and does not meet the test of formation of an opinion of the Assessing Officer who ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he transaction, when entered into in 2017 or 2018 could be genuine and when the officer visits in 2020 or 2021, the business could have been closed and therefore the mere closure of business in 2020 or 2021 cannot be a basis for denying credit availed earlier. All these factors required that the respondents-revenue ought to have carefully considered and verified all aspects before taking such a drastic action of blocking credit under Rule 86A which is yet another circumstance that would vitiate the impugned order. 9.11 The aforesaid facts and circumstances are sufficient to come to the unmistakable conclusion that in the absence of valid nor sufficient material which constituted 'reasons to believe' which was available with respondents, the mandatory requirements/pre-requisites/ingredients/parameters contained in Rule 86A had not been fulfilled/satisfied by the respondents-revenue who were clearly not entitled to place reliance upon borrowed satisfaction of another officer and pass the impugned orders illegally and arbitrarily blocking the ECL of the appellant by invoking Rule 86A which is not only contrary to law but also the material on record and consequently, the impugned or....