Blocking ITC Beyond Available Credit Held Illegal by P&H HC

Mannat Steels Vs Union of India And Another (Punjab and Haryana High Court)

The present writ petition challenges the action of the respondents in blocking the petitioner’s Electronic Credit Ledger (ECL) and creating a negative entry dated 03.10.2025, which blocked Input Tax Credit (ITC) of Rs.8,00,164/-. The petitioner contended that such action violated Rule 86A of the Central Goods and Services Tax Rules, 2017 (CGST Rules) and the Punjab GST Rules, 2017, as well as principles of natural justice. The central legal question was whether Rule 86A permits the Commissioner or an auth

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