Blocking Electronic-Credit Ledger under Rule 86A without pre-decisional Hearing Not Tenable

Ittefaq Steels and Scarp Traders Vs Additional Chief Secretary (Karnataka High Court) Karnataka High Court held that blocking of Electronic Credit Ledger by invoking Rule 86A of the CGST Rules, 2017 without granting pre-decisional hearing and without providing independent or cogent reason in the order is not justifiable. Accordingly, order is liable to be quashed. Facts- The Electronic credit ledger of the petitioner was blocked by the impugned order at Annexure – B dated 03.09.2024, by invoking Rule 86A of the Central Goods and Services Tax Rules, 2017. Petitioner has contested that bef...