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2023 (7) TMI 190 - BOMBAY HIGH COURTBlocking the available Input Tax Credit (ITC) without any show cause notice - violation of Rule 86A of the Central Goods and Services Tax Rules, 2017 - creating a negative balance being shown in the Electronic Credit Ledger of the petitioner - authority whatsoever to make such negative balance in the Electronic Credit Ledger. HELD THAT:- Rule 86A of the CGST Rules, 2017 makes a provision that reasons to be recorded in writing for not allowing debit of an amount equivalent to such credit in electronic credit ledger, for discharge of any liability under Section 49 or for claim of any refund of any unutilised amount. It is also envisaged that the Commissioner, or the officer authorised by him under sub-rule (1) may, upon being satisfied that conditions for disallowing debit of the electronic credit ledger no longer exist, allow such debit. In the present case the petitioner has not been furnished with any details much less reasons recorded in writing indicating in regard to the impugned action is the grievance of the petitioner. It is submitted that the impugned action on the part of the respondents is violative of the basic requirements of Rule 86A, and the same would be required to be set aside, being authority as also without jurisdiction. Matter adjourned.
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