2025 (5) TMI 844 - SCH - GST

Interpretation of Rule 86A of the CGST Rules - Blocking of input tax credit - excess of the credit available in their respective ECLs - It is the case of the petitioners that Rule 86A of the Rules does not permit blocking of the ITC which is unavailable in a taxpayer s ECL - whether Rule 86A of the Rules permits the Commissioner or an officer authorized by him to block a taxpayer s ECL (Electronic Credit Ledger) by an amount exceeding the credit available at the time of issuance of the said order? - it was held by High Court that The orders impugned in the present petitions are set aside to the extent the impugned orders disallow debit from the respective ECL of the petitioners in excess of the ITC available in the ECL at the time of passing of the impugned orders. HELD THAT - No case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India. The Special Leave Petitions are accordingly dismissed. However other remedies of the petitioners for recovery in accordance with law are kept open. Application disposed off.

Summary

The Supreme Court, through Hon'ble Justices Abhay S. Oka and Ujjal Bhuyan, heard the Special Leave Petitions (SLPs). After considering the submissions, the Court "condoned delay" but held that "no case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India." Consequently, the SLPs were dismissed. The Court clarified that "other remedies of the petitioners for recovery in accordance with law are kept open." Pending applications, if any, were disposed of.