M/S Z I Enterprises vs. Assistant Commissioner Of Commercial Taxes
Held
The Court held that blocking the petitioner's Electronic Credit Ledger was done without providing an opportunity for a pre-decision hearing. The decision was based solely on a report, which is impermissible.
Facts
The petitioner's Electronic Credit Ledger was blocked for a sum of Rs. 17,70,820/- by an order under Rule 86(A) of the GST Act. The petitioner contended that this action was illegal and violated principles of natural justice.
Key Issues
Whether the blocking of the Electronic Credit Ledger was done in violation of the principles of natural justice by denying a pre-decision opportunity to the petitioner.
Sections Cited
Rule 86A
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010527432026 NC: 2026:KHC:42885 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 23956 OF 2026 (T-RES) BETWEEN:
M/S Z I ENTERPRISES HAVING ITS PRINCIPAL PLACE OF BUSINESS AT NO.4/B AZEEZ SAIT INDUSTIRAL TOWN, 1ST CROSS, GANGONDANAHALLI BENGALURU KARNATAKA-560039
THROUGH ITS PROPRIETOR MR KAZIM PASHA S/O LATE SYED MAHMOOD AGED ABOUT 47 YEARS …PETITIONER (BY SRI. GOWRI SHANKER M., ADVOCATE) AND:
ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-062, NO.642 PIONEER PLAZA KENCHENAHALLI MAIN ROAD, RAJARAJESHWARI NAGAR BANGALORE-560098 …RESPONDENT (BY SRI. K. HEMA KUMAR, AGA A/W SMT. MALAVIKA PRASAD, HCGP) VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010527432026 NC: 2026:KHC:42885 THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED ORDER
The judgment continues below.
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