Shri Ram Enterprises vs. State Of Punjab And Another
Held
The Court held that Rule 86A of the GST Rules does not permit blocking an Electronic Credit Ledger by an amount exceeding the credit available at the time of the order. Creating a negative balance in the ECL is unsustainable.
Facts
The petitioner's Electronic Credit Ledger (ECL) was blocked by the respondents, resulting in a negative balance. This action was taken without prior notice and allegedly in violation of natural justice principles and Rule 86A of the GST Acts.
Key Issues
Whether Rule 86A allows blocking of an ECL with a negative balance, exceeding the available credit, and if such action violates 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-32381-2025
296
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-32381-2025 Date of Decision: November 19, 2025
SHRI RAM ENTERPRISES
.....Petitioner
Versus
STATE OF PUNJAB AND ANOTHER
..... Respondents
CORAM:- HON'BLE MRS. JUSTICE LISA GILL
HON'BLE MR. JUSTICE PARMOD GOYAL
Present: Mr. Mukul Singla, Advocate for the petitioner.
Mr. R.S. Pandher, Addl. AG, Punjab.
****
LISA GILL, J.
Learned counsel for petitioner submits that prayer in this writ petition is restricted to action of respondents blocking Electronic Credit Ledger (ECL) of petitioner and for deleting entry dated 17.09.2025 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 integrit
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