Rule 86A of the CGST Rules, 2017—Blocking of Electronic Credit ledger —-The petitioner sought a writ in the nature of mandamus directing respondent No. 4 to unblock the credit of Rs.95,50,660/- , being not satisfying the conditions of Rule 86A. The petitioner has challenged the notification dated 09.10.2019. The court observed that Notification dated 02.11.2021 shows that the Department has laid down guidelines for disallowing debit of electronic credit ledger under Rule 86A. The detailed guidelines have been issued whereby powers under Rule 86A can be exercised by the Officers on the monetary limits prescribed under Rule 3.1. Since the guidelines are very clear that after one year, the registered person would be able to debit input tax credit so disallowed.

Held that:- The Hon’ble High Court directed the respondents to unblock the credit ledger of the petitioner which has been blocked as period of 3 years have expired on 28.01.2023 after the credit ledger was blocked on 28.01.2020. However, challenge to the vires of Rule 61 and notification dated 10.09.2018 shall remain open.