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Informative

ITC Blocked Alleging Dealers found Non-Existent: Madras HC Directs GST Department to Consider Representation for Unblocking ECRL u/r 86A

Update / Judgement Date

12 May 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderGST

The Madras High Court directed GST authorities to properly consider a taxpayer's representation regarding blocked Input Tax Credit (ITC) under Rule 86A. The court emphasized that blanket blocking of ITC without proper examination violates principles of natural justice. This interim relief requires the department to provide a reasoned order if maintaining the block, ensuring taxpayers get fair opportunity to present their case before credit restrictions.