Ms Dua Metals vs. Union Of INDIA And Others
Held
The Court held that Rule 86A of the GST Rules does not permit blocking an ECL to create a negative balance or in excess of the credit available at the time of blocking. Such an action is considered without jurisdiction and illegal.
Facts
The petitioner's Electronic Credit Ledger (ECL) was blocked by the respondents, resulting in a negative balance. This action was taken without prior intimation or notice and allegedly in violation of natural justice principles and Rule 86A of the GST Acts.
Key Issues
Whether Rule 86A permits blocking an ECL to create a negative balance or in excess of available credit. Whether blocking of ITC in excess of available credit violates statutory provisions and principles of natural justice.
Sections Cited
Rule 86A, Section 73, Section 74
AI-generated summary — verify with the full judgment below
1
CWP-32302-2025
294 IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-32302-2025 Date of Decision: November 19, 2025
M/S DUA METALS
.....Petitioner
Versus
UNION OF INDIA AND OTHERS
..... Respondents
CORAM:- HON'BLE MRS. JUSTICE LISA GILL
HON'BLE MR. JUSTICE PARMOD GOYAL
Present: Mr. Tarang Goyal, Advocate for the petitioner.
Mr. Ajay Kalra, Senior Standing counsel for respondents.
****
LISA GILL, J.
It is submitted that prayer in this writ petition is restricted to action of respondents blocking Electronic Credit Ledger (ECL) of petitioner and for deleting entry dated 09.05.2025 through which Input Tax Credit has been blocked in negative by the respondents, statedly in violation of provisions of Rule 86A of Central Goods and Services Tax Act, 2017 and Punjab Goods and Services Tax Act, 2017 and in violation of principles of natural justice.
Learned counsel for parties are ad idem that question which arises for consideration in the writ petition is:- RITU SHARMA 2025.11.28 12:27 I attest to the accuracy and integrity of this
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