Governing rule empowered Commissioner or officer authorized by him not below Assistant Commissioner to block ITC

Punjab and Haryana High Court

Shreyah retail p Ltd
Vs
Assistant Commissioner of State
12-05-2026.

Case details.

Petitioner-assessee challenged departmental blocking of ITC in electronic credit ledger –

Contention was that blocking was done without prior order recording reasons to believe as mandated by governing rule

Governing rule empowered Commissioner or officer authorized by him not below Assistant Commissioner to block ITC only upon reasons to believe of fraudulent availment or ineligibility –

Satisfaction had to be formed contemporaneously and recorded in writing before invoking disabling of ledger –

It was undisputed that no prior order existed recording such reasons before blocking petitioner’s ledge

Absence of recorded reasons contravened statutory preconditions and vitiated exercise of power –

Impugned blocking of electronic credit ledger was illegal

Release of blocked ITC was ordered –

Respondents were left at liberty to proceed afresh in accordance with law.