Whether the revenue department can block an Electronic Credit Ledger by making a negative balance?
The Honorable Telangana High Court in Laxmi Fine Chem held that in case assessee has wrongly or fraudulently availed input tax credit, the Revenue department should initiate appropriate recovery proceedings under section 73 or 74 of the CGST Act, 2017, rather than invoking Rule 86(A) of the CGST Rules, 2017.