2026 (10) TMI 213

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....ON'BLE MR. JUSTICE B M SHYAM PRASAD For the Petitioner : Sri. Shreehari., Advocate For the Respondents : SRI.K. HEMA KUMAR., AGA ORAL ORDER: The petitioner's grievance is with the first respondent's order dated 18.06.2026 under Rule 86-A (1) and (2) of the Central Goods and Services Tax Rules, 2017/Karnataka Goods and Services Tax Rules, 2017 [for short, 'the Rules]. The first resp....

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....6-2026, with a clear instruction that its physical presence was necessary to substantiate the genuineness of the reported transactions and to establish the bona fids of the ITC availed." 3. Sri Shreehari K., the learned counsel for the petitioner, and Sri K. Hema Kumar, the learned Additional Government Advocate who accepts notice for the respondents, are heard on whether the afore would satisf....

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....the same, and therefore, this Court must intervene permitting the petitioner to use the credit in its Electronic Credit Ledger. 5. Sri K. Hema Kumar submits that if this Court is of the view that the petitioner must have another opportunity to show cause against the blocking of the Electronic Credit Ledger, there may be just orders in view of the fact that the claim for the ineligible ITC claim....

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....hen there is an allegation of lack of opportunity and an allegation of ITC claim based on transactions with non-existing entities, must direct the first respondent to examine all the circumstances with opportunity to the petitioner and decide on continuing the blocking as against blocking the petitioner's Electronic Credit Ledger. This Court therefore concludes on the following: * The fir....