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GST - Validity of blocking of credit in electronic credit ledger in exercise of powers under Rule 86A of the CGST Rules beyond the expiry of a period of one year from the date of imposing such restrictions – by interim application petitioner seeks lifting of provisional attachment of electronic credit ledger – Petitioner also challenged the vires of Section 16(2)(c) of the CGST Act, 2017 in so far as denying input tax credit on the ground that the selling dealer did not deposit the tax with the Government revenue – HELD - the restrictions that can be imposed under Rule 86A on use of amount available in electronic credit ledger of a person can be by way of a temporary measure for a period not exceeding one year - This is an interim measure and, therefore, cannot take shape of a permanent arrangement. If the department wants to permanently disallow credit of accumulated amount in the ledger of a dealer, it must adjudicate the issue and pass an adjudication order - Sub-rule (3) of Rule 86A clearly brings about this legislative intent while it provides that such restrictions shall cease to have effect after the expiry of a period of one year and there is no scope of extension of this time – further, upon expiry of a period of one year the effect of the restriction seizing to take effect would be automatic - it would be open for the petitioner to utilise the amount credited in the said ledger for the purpose of payment of its taxes in accordance with law – the writ petition is allowed
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