M/S Sonalika Enterprises vs. State Of Haryana And Others
Held
The Court held that blocking of ITC in the Electronic Credit Ledger to create a negative balance is impermissible under Rule 86A if no credit is available. The impugned orders creating a negative balance were set aside.
Facts
The petitioner's Electronic Credit Ledger (ECL) was blocked by the respondents, creating a negative balance, allegedly in violation of Rule 86A of the CGST/HGST Acts and principles of natural justice. The petitioner argued that Rule 86A does not permit blocking ITC in excess of the available credit.
Key Issues
Whether Rule 86A permits blocking of Electronic Credit Ledger by an amount exceeding the credit available at the time of the order, and if such blocking can create a negative balance.
Sections Cited
Rule 86A, Section 73, Section 74, Section 29, Section 83
AI-generated summary — verify with the full judgment below
1
CWP-14715-2025
271
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-14715-2025
Date of Decision: November 19, 2025
M/S SONALIKA ENTERPRISES
.....Petitioner
Versus
STATE OF HARYANA 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.
Ms. Mamta Singla Talwar, DAG, Haryana.
****
LISA GILL, J.
It is submitted that prayer in this writ petition is restricted to action of respondents of blocking Electronic Credit Ledger (ECL) of petitioner and for deleting entry dated 02.12.2024 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 Haryana Goods and Services Tax Act, 2017 and in violation of principles of natural justice. RITU SHARMA 2025.11.28 12:27 I attest to the accuracy and integrity of this document
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CWP-14715-2025
Learned counsel f
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