Durga Concast PVT LTD vs. Union Of INDIA And Others
Held
The Court held that blocking ITC to a negative balance is impermissible under Rule 86A as it requires available credit in the ECL for the power to be invoked. The impugned orders creating a negative balance were set aside.
Facts
The petitioner's Electronic Credit Ledger (ECL) had its Input Tax Credit (ITC) blocked to a negative amount, exceeding the available credit. This action was taken by the respondents without prior intimation or notice, allegedly violating principles of natural justice and Rule 86A of the GST Acts.
Key Issues
Whether Rule 86A permits blocking of ITC in an Electronic Credit Ledger to a negative amount when no credit is available. Whether the action taken was in violation of statutory provisions and principles of natural justice.
Sections Cited
Rule 86A, Section 73, Section 74, Section 29, Section 83
AI-generated summary — verify with the full judgment below
1
CWP-29317-2025
283 IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-29317-2025 Date of Decision: November 19, 2025
DURGA CONCAST PVT. LTD.
.....Petitioner
Versus
UNION OF INDIA AND OTHERS
..... Respondents
CORAM:- HON'BLE MRS. JUSTICE LISA GILL
HON'BLE MR. JUSTICE PARMOD GOYAL
Present: Mr. Sandeep Goyal, Senior Advocate with Mr. Rishab Singla, Advocate for the petitioner.
Mr. Ajay Kalra, Senior Standing counsel for the respondents.
****
LISA GILL, J.
Learned counsel for petitioner submits that prayer in this writ petition is restricted to action of respondents of blocking of Electronic Credit Ledger (ECL) of petitioner and for deleting entry dated 12.06.2025 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. RITU SHARMA 2025.11.29 15:42 I attest to the accuracy and integrity of this document
2
CWP-29317-20
The judgment continues below.
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