Authority: High Court of Judicature at Bombay
Order Date: 17 September 2026
Case Overview
- Petitioner: S S Gold (holding GST registration); Respondents: Union of India and others.
- Petition filed under Article 226 seeking quash of GST ITC blocking order and attachment notice of Rs 7,16,01,876 dated 17 May 2024.
- On 17 May 2024, the electronic credit ledger showed an available ITC of Rs 2,41,642, which was utilized, resulting in a negative balance of Rs 7,13,60,234 after the block.
- The GST portal indicated the reason for blocking as “Supplier found non‑functioning, Registration of supplier has been cancelled,” without naming a specific supplier.
- Respondent State argued the block was valid under Rule 86A of the CGST Rules, 2017.
- The Court examined Rule 86A, particularly sub‑clause (3) which states that a restriction shall cease after one year from the date of imposition.
- Since the restriction was imposed on 17 May 2024, the one‑year period expired on 17 May 2025, well before the order date.
Final Outcome
- The Court allowed prayer clause (A) and quashed the order of blocking of ITC and the attachment notice of Rs 7,16,01,876.
- Reliefs under prayer clauses (B) and (C) were left open for the petitioner to pursue through alternate remedies.
- The petition was disposed of.
Topics: GST, Tax Litigation