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2022 (3) TMI 1249 - GUJARAT HIGH COURTBlocking of input tax credit including the negative block of electronic credit ledger - Seeking permission to raise of E-way bill - interest and penalty due to late filing of GSTR-3B return - HELD THAT:- The principal issue involved in the present writ application is no longer res integra in view of the recent pronouncement of of this Court in the case of SAMAY ALLOYS INDIA PVT. LTD. VERSUS STATE OF GUJARAT [2022 (2) TMI 843 - GUJARAT HIGH COURT] where it was held that Rule 86A is not the rule which entitled the proper officer to make debit entries in the electronic credit ledger of the registered person. The rule merely allows the proper officer to disallow the registered person debit from the electronic credit ledger for the limited period of time and on a provisional basis. The respondents are directed to withdraw the negative block of the electronic credit ledger at the earliest. The negative block is to the extent of ₹ 14,11,678/-. Whatever balance remained in the electronic credit ledger after the removal of the balance to negative figure, the same shall not be utilized by the writ applicant till the show cause notice is issued if any under Section 73 or 74 respectively of the C.G.S.T. Act. Once the negative block is removed, the writ applicant shall proceed to file his returns with appropriate tax, penalty and interest, that may be determined in accordance with law. Application allowed.
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