Constitutional validity of Rule 86A of the CGST/SGST Rules, ...

Court Quashes Order Blocking Electronic Credit Ledger Due to Lack of Hearing and Justification, Upholds Fair Process.

October 23, 2024

Case Laws GST HC

Constitutional validity of Rule 86A of the CGST/SGST Rules, 2017, which was challenged for violating Articles 14 and 19(1)(g) of the Constitution of India. The court held that since no pre-decisional hearing was granted before passing the impugned order blocking the petitioner's electronic credit ledger, and the order lacked independent or cogent reasons except relying on the enforcement authority's reports, which is impermissible as it constitutes borrowed satisfaction, the impugned order deserved to be quashed. Consequently, the High Court quashed the impugned order dated 23.01.2020 and directed the respondents to unblock the petitioner's electronic credit ledger immediately to enable the petitioner to file returns forthwith, allowing the petition.

View Source

← Previous Next →

Constitutional validity of Rule 86A of the CGST/SGST Rules, ...

Court Quashes Order Blocking Electronic Credit Ledger Due to Lack of Hearing and Justification, Upholds Fair Process.

October 23, 2024

Case Laws GST HC

You may also like:

Rule 86A of the Central/State Goods and Services Tax Rules, 2017, which allows blocking of the Electronic Credit Ledger, has been held unconstitutional by the High Court...

The High Court held that petitioners are entitled to pay 10% of the disputed GST amount as a pre-condition for filing an appeal by debiting the amount available in the...

The HC allowed the petition, quashing the impugned order blocking the petitioner's Electronic Credit Ledger (ECL) under Rule 86A of CGST Rules. The court found the order...

Manner of making Pre-deposit before filing an Appeal - Utilization of Input Tax credit (ITC) available in the Electronic Credit Ledger (ECL) - The petitioner approached...

The HC quashed the order blocking the petitioner's Electronic Credit Ledger under Rule 86A of KGST/CGST Rules. The Court found multiple procedural deficiencies: no...

The High Court quashed the impugned letter directing payment of pre-deposit through Electronic Cash Ledger, holding that utilizing the Electronic Credit Ledger for...

HC held that the order disallowing credit passed by Deputy Commissioner without hearing petitioner violated principles of natural justice. The notice was issued by Joint...

Tax authority's action of blocking input tax credit in electronic credit ledger without following due process held untenable. Cross-utilization of credit between CGST...

The High Court addressed the demand for interest u/s 50 of the Central Goods and Services Tax Act, 2017. It clarified that interest on delayed tax payment is not...

Petitioner failed to substantiate Input Tax Credit claim due to lack of supplier certificates. Discrepancy noted between Input Tax Credit availed in GSTR 3B and...

Interest Liability on Electronic Credit Ledger Payments - Seeking levy of interest only on that part of the tax which is paid in cash - The High court concluded that the...

HC ruled that the recovery of Rs. 50,330/- from petitioners' electronic cash and credit ledgers was unlawful. The court directed respondents to verify the recovery and...

Jurisdiction or authority to block any input tax credit - Reason to believe that input tax available in the electronic credit ledger has been fraudulently availed or is...

Notification 53/2023 issued by the Ministry of Finance permitted filing delayed appeals beyond Section 107 of GST Act, stipulating payment of 12.5% of pending amounts,...

Refund of pre-deposit made under Section 35F by way of reversal in GST-ITC credit - Since the Commissioner (Appeals) has agreed that the appellant is eligible to avail...

Quick Updates: