GST:
Revenue Department cannot block Electronic Credit Ledger by making negative balance
- Plain perusal of the impugned order under challenge shows that the Revenue department have made a negative credit in the electronic credit ledger of the Petitioner which otherwise is not permissible and what is permissible is only blocking the availing of the input tax credit to whatever is in credit of the Petitioner.
- Stated that, Rule 86A of the CGST Rules, empowers the proper officer to disallow debit from the electronic credit ledger for an amount equivalent to the amount claimed to have been fraudulently availed and if no input tax credit was available in the credit ledger, the rules does not provide for insertion of negative balance in the ledger.
Telangana High Court in Laxmi Fine Chem v. Assistant Commissioner [W.P No. 5256 of 2024 dated March 18, 2024]
