2024 (11) TMI 190

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....Article 226 of the Constitution, commanding the respondents to unblock the Electronic Credit Ledger [ECL] as maintained by the writ petitioner in accordance with the provisions of the Central Goods and Services Tax Act, 2017 [Act] and the Central Goods and Services Tax Rules, 2017 [Rules]. 2. Undisputedly, on the date when the blocking was enforced, namely, 29 April 2024, the amount standing to the credit of the ECL was INR 7,60,581/-. It is in the aforesaid context that the petitioner contends that the blocking of INR 43,76,492/- and the consequential insertion of a negative balance amounting to INR 36,18,911/- in the petitioner's ECL would not sustain. 3. We find that the issue of 'negative blocking', and on grounds on which it is a....

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....er has wrongly availed of the ITC the proper officer is required to pass an order to determine the amount of tax, interest or penalty payable. The demand as raised are required to be determined under Sections 73 and 74 of the CGST Act. 79. If at any stage the Commissioner or an officer authorized by him is satisfied that the conditions for disallowing debit no longer exists, Sub-rule (2) of Rule 86A of the Rules requires such officer to permit debit from the taxpayer's ECL. In any event, by virtue of Sub-rule (3) of Rule 86A of the Rules, the order passed under Rule 86A (1) of the Rules is operative only for a maximum period of one year from the date of passing the said order. 80. Rule 86A of the Rules is not a machine....