Karnataka HC Quashes ITC Blocking as Rule 86A Action Was Taken Without Prior Notice

GVS Engineering And Construction Vs Assistant Commissioner of Commercial Taxes (Karnataka High Court) The Karnataka High Court partly allowed a writ petition challenging proceedings dated 24.02.2026 under Rule 86A of the Central Goods and Services Tax Act, 2017, by which the respondent blocked the petitioner’s Input Tax Credit (ITC) of Rs.17,91,932. The ITC was blocked on the ground that M/s Ganesh Traders was allegedly a bill trader issuing fake invoices and that its business premises did not exist. The petitioner contended that the respondent was required to issue a prior notice before...