Ishaan Metal vs. State Of Haryana And Another
Held
The Court held that Rule 86A of the GST Rules does not permit blocking an ECL 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 permits blocking an ECL by an amount exceeding the available credit, thereby creating a negative balance.
Sections Cited
Rule 86A, Section 73, Section 74
AI-generated summary — verify with the full judgment below
1
CWP-32723-2025
298
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-32723-2025 Date of Decision: November 19, 2025
ISHAAN METAL
.....Petitioner
Versus
STATE OF HARYANA AND ANOTHERS
..... Respondents
CORAM:- HON'BLE MRS. JUSTICE LISA GILL
HON'BLE MR. JUSTICE PARMOD GOYAL
Present: Mr. Mukul 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 blocking Electronic Credit Ledger (ECL) of petitioner and for deleting entry dated 17.02.2025 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 Haryana 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 docum
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.