Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Blocking ITC Without Independent “Reasons to Believe” Violates Rule 86A: Karnataka HC Quashes Freeze
Update / Judgement Date
27 Nov 2025
Source
Author
Sakshi Bhardwaj — WCP Legal Desk
Reading Time
1 min read
GST
Karnataka High Court quashed an Electronic Credit Ledger (ECL) freeze, holding that Rule 86A requires an independent “reason to believe” and cannot be invoked mechanically. The Court emphasized that ITC blocking is an extreme measure impacting working capital and must be supported by concrete evidence of fraud or ineligibility. The ruling strengthens procedural safeguards for taxpayers facing arbitrary ITC restrictions.
