High Court of Jammu & Kashmir and Ladakh12 August 2026

NCC Ltd. v. Union Territory of J & K

For assessee

WP(C) NO. 1935 OF 2026

The ruling in brief

Where construction company’s electronic credit ledger was blocked under Rule 86A by Additional Commissioner without recorded reasons or prior hearing, such action, though Rule 86A does not specify hearing, violated principles of natural justice due to serious civil consequences, and order was set aside as arbitrary and passed in breach of audi alteram partem

Provisions considered

Section 49 of Central Goods and Services Tax Act, 2017/Jammu and Kashmir Goods and Services Tax Act, 2017 - Rule 86A of Central Goods and Services Tax Rules, 2017/Jammu and Kashmir Goods and Services Tax Rules, 2017

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The ruling in brief

Related rulings

GSTAT Lucknow27 Aug 2026

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Lucknow Test House v. Shashi Bhushan Singh

Where assessee's ITC allocation between IGST, CGST and SGST showed head- wise mismatch but total eligible ITC in electronic credit ledger equaled claimed ITC, such mismatch did not constitute excess ITC and principal demand, interest and penalty could not be sustained in absence of actual excess availment, as clarified by CBIC and supported by Rule 88B

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Metal Trade Incorporation v. State Tax Officer

Where registered trader's input tax credit in electronic credit ledger was blocked for over two years despite express rule limiting restriction period to one year, such continued blockage was invalid as the rule mandated unblocking after one year, and internal communication could not lawfully justify extension of restriction beyond statutory limit

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Rajasthan High Court20 Aug 2026

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Jagdish Prasad Agrawal v. Union of India

Where petition challenged respondents' blocking of ITC credited in electronic credit ledger for noncompliance with Rule 86A, alleging absence of recorded reasons and precondition satisfaction, and ledger subsequently became unblocked by operation of law during proceedings, since mandatory requirements of Rule 86A were not complied and substantive relief was spent, petition was disposed with a caution of future liability for noncompliance

NCC Ltd. v. Union Territory of J & K

The ruling in brief

Provisions considered

NCC Ltd. v. Union Territory of J & K

The ruling in brief

Provisions considered

Read the full analysis

Lucknow Test House v. Shashi Bhushan Singh

Metal Trade Incorporation v. State Tax Officer

Jagdish Prasad Agrawal v. Union of India

Read the full analysis