Hearing Opportunity Mandatory After ECL Blocking Under Rule 86A: Karnataka HC

K-9-Enterprises Vs State Of Karnataka (Karnataka High Court) In the case of K-9 Enterprises Vs State of Karnataka, the Karnataka High Court examined the validity of orders issued under Rule 86A of the Central Goods and Services Tax (CGST) Rules, 2017. The petitioners challenged the blocking of their Input Tax Credit (ITC) in the electronic credit ledger without prior notice or an opportunity to be heard. They argued that such actions violated principles of natural justice and constitutional rights under Articles 14 and 19(1)(g). The petitioners maintained that their transactions were legitimat...