2026 (9) TMI 398

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....oner filed W.P.No.41890 of 2025. An interim stay was granted in relation to recovery measures on 25.02.2026. Prior thereto, the petitioner's electronic credit ledger was blocked on 04.02.2025. Such blocking order is the subject of challenge in this writ petition. 2. The first contention of learned counsel for the petitioner is that the blocking order cannot survive in light of order dated 25.02.2026. The second contention is that such blocking order travels beyond the scope of Section 79 of applicable GST enactments. Comparing and contrasting the language of Rule 86A with Section 79, learned counsel contends that negative blocking is impermissible under Section 79. 3. Mr.Rajendran Raghavan, learned Senior Standing Counsel, accepts not....

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.... under the control of the proper officer or such other specified officer; (c) (i) the proper officer may, by a notice in writing, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the Government either forthwith upon the money becoming due or being held, or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount; (ii) every person to whom the notice is issued under sub-clause (i) shall be bound to comply with such notice, and ....

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.... of the liability of the person in default for tax, interest and penalty, whichever is less; (vii) where a person on whom a notice is served under sub-clause (i) proves to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he did not hold any money for or on account of the person in default, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the said person or be held for or on account of such person, nothing contained in this section shall be deemed to require the person on whom the notice has been served to pay to the Government any such money or part thereof; (d) the prop....