Rule 86A provides for Interim restriction of attachment, bi-parte hearing order should be passed to make it permanent

Last updated: 29 September 2021
Quick Summary
The Tripura High Court ruled that restrictions on using an electronic credit ledger under Rule 86A of the CGST Rules are temporary and cannot exceed one year. If the tax department wishes to permanently disallow credit, they must conduct a formal adjudication process with a bi-parte hearing. The court ordered the release of a ledger that had been restricted beyond the one-year limit.

Court :
Tripura High Court

Brief :
In M/s Sahil Enterprises. v. Union of India. [IA No.1/2021 with WP(C) No.531/2021 dated September 14, 2021],M/s Sahil Enterprises ("the Petitioner") has filed the current application seeking interim relief for removing the provisional attachment which was ordered by the Commissioner of Central Goods and Services Tax, under Rule 86A of Central Goods and Service Tax Rules, 2017 ("CGST Rules") vide Order dated May 21, 2020.

Citation :
IA No.1/2021 with WP(C) No.531/2021 dated September 14, 2021

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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Bimal Jain
Published in GST
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