#borrowed satisfaction

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ITC ledger blocking quashed as action under Rule 86A was found to be based on borrowed satisfaction and without pre-decisional hearing

Case Title: The Lead Factory v. Assistant Commissioner of Commercial Taxes & Ors.Court: High Court of Karnataka, BengaluruPetition No.: W.P. No. 7474 of 2025 (T-RES)Date of Judgment: 19 March 2025Category: Input Tax Credit – Blocking under Rule 86ARelevant Provisions: Rule 86A of the CGST/SGST Rules, Sections 16 and 49 of the CGST Act Facts (Paras 2–3) The petitioner, The Lead Factory,…

ITC ledger blocking quashed as action under Rule 86A was found to be based on borrowed satisfaction and without pre-decisional hearing

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ITC ledger blocking under Rule 86A quashed for lack of hearing and borrowed satisfaction without independent reasons

Case Title: M/s Ittefaq Steels and Scrap Traders v. Additional Chief Secretary, Finance Department & Assistant Commissioner of Commercial Taxes (Audit)-6, MysoreCourt: High Court of Karnataka, BengaluruPetition No.: Writ Petition No. 12137 of 2025 (T-RES)Category: Input Tax Credit – Rule 86A blocking of Electronic Credit LedgerDate of Judgment: 24 April 2025Relevant Provisions: Rule 86A of…

ITC ledger blocking under Rule 86A quashed for lack of hearing and borrowed satisfaction without independent reasons

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ITC ledger blocking orders quashed as they were passed without pre-decisional hearing and based on “borrowed satisfaction” lacking independent reasons to believe

Case Title: M/s IBA Enterprises v. State of Karnataka & M/s S.F. Traders v. State of KarnatakaCourt: High Court of Karnataka, BengaluruPetition Nos.: W.P. No. 3228 of 2025 (T-RES) with W.P. No. 3376 of 2025 (T-RES)Date of Judgment: 14 March 2025Category: Input Tax Credit (ITC) – Blocking of Electronic Credit Ledger under Rule 86ARelevant Section/Rules: Rule 86A of the CGST Rules, 2017; Section 16…

ITC ledger blocking orders quashed as they were passed without pre-decisional hearing and based on “borrowed satisfaction” lacking independent reasons to believe

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ITC blockage quashed as Rule 86A order found to be mechanical and based on borrowed satisfaction without independent “reasons to believe.”

Case: M/s A.M. Enterprises v. State of Karnataka & Ors., High Court of Karnataka, WP No. 36304 of 2024 (T-RES)Date of Judgment: 11 March 2025Relevant Sections: Section 16 & Section 86A of the CGST/KGST Act, 2017; Rule 86A of the CGST Rules, 2017Category: Input Tax Credit (ITC) – Blocking of Electronic Credit Ledger Facts (Paras 1–3) The petitioner, M/s A.M. Enterprises, challenged the order…

ITC blockage quashed as Rule 86A order found to be mechanical and based on borrowed satisfaction without independent “reasons to believe.”