The court quashed the order blocking the Electronic Credit Ledger (ECL) of the petitioner u/r 86A of the Central Goods and Services Tax Rules, 2017. The respondents did not provide a pre-decisional hearing to the petitioner, nor did the impugned order contain cogent reasons to believe that blocking the ECL was necessary, violating principles of natural justice. The court relied on the K-9-Enterprises case, where it was held that the mandatory requirements of Rule 86A were not fulfilled, and the respondents could not rely on the satisfaction of another officer. The impugned order merely stated that the supplier was found non-existent or not conducting business, without providing independent or cogent reasons. Consequently, the impugned orders were quashed for lack of valid reasons and violation of principles of natural justice.

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