Revenue Authorities Violated Natural Justice by Blocking Credit Ledger Without Hearing, Lacking Independent Verification.

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....The High Court held that the revenue authorities committed grave illegality by not granting pre-decisional hearing to the appellants before blocking their Electronic Credit Ledger u/r 86A of CGST Rules, violating principles of natural justice. The Court observed that although Rule 86A doesn't expressly provide for pre-decisional hearing, it has to be read into the provision when serious civil consequences arise. The authorities passed orders solely based on communication from another officer without independently analyzing if Input Tax Credit was on account of fake invoices, which is impermissible. The orders lacked valid material constituting 'reasons to believe' and were passed on borrowed satisfaction, rendering them bald, vague, and unr.........