Blocking of Electronic Credit Ledger u/r. 86A of CGST Rules without stating reasons to believe is invalid

Advertisement Bee Jay Engineers Vs State of Karnataka (Karnataka High Court) Karnataka High Court held that blocking of Electronic Credit Ledger by invoking provisions of Rule 86A of the Central Goods and Services Tax Rules, 2017 [CGST Rules] is illegal and arbitrary since reasons to believe was not provided which is mandatory requirement for invoking Rule 86A. Facts- The present petition has been preferred by the petitioner. It is contested that department has erred in blocking Electronic Credit Ledger by invoking rule 86A of the Central Goods and Services Tax Act. Further, it is mainly a...