2026 (5) TMI 701

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.... State. ORDER This petition under Article 226 of the Constitution is filed praying for the following substantive reliefs: (a) This Hon'ble Court be pleased to issue any appropriate Writ or Order or direction under Article 226 of the Constitution of India thereby calling for relevant record and proceedings from the office of respondent No.3 and after going through the same, be please....

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....respondent No.3 issued a show cause notice to the petitioner as to why the petitioner's input tax credit of Rs.1.42 crores be not blocked. Before the petitioner could file a reply to the show cause notice, on 24 July 2025 the impugned action of blocking Rs.1.42 crores was resorted without taking the show cause notice to its logical conclusion. 4. Learned Counsel for the petitioner would submit ....

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....r submits that, so far, no order has been passed on the show cause notice as per his instructions. 5. In this view of the matter, he would submit that the impugned action is in the teeth of Rule 86A of the CGST Rules. In support of his contention, he has placed reliance on the decision of the co-ordinate Bench of this Court in Rawman Metal & Alloys Vs. The Deputy Commissioner of State Tax, Than....

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...., it is contended on behalf of the petitioner that at the relevant time, there was a negative balance and therefore, there was no question of blocking of the petitioner's electronic credit ledger by the impugned order. 6. Having heard learned Counsel for the parties and having perused the record, as also the position in law as laid down by this Court in Rawman Metal & Alloys (supra) which also ....