Blocking electronic credit ledger under Rule 86A must precede with reason recorded in writing and such reasons would be open to challenge at appropriate forum.
Principles of natural justice form an integral part of judicial and quasi judicial proceedings.
However, with enactment of GST, it is widely seen that the department often lacks in fulfilling even the basic essentials like recording and communicating reasons before an adverse action or decision is taken/passed.
In one such case the Hon’ble Madras High Court held that blocking electronic credit ledger under Rule 86A must precede with reason recorded in writing and such reasons would be open to challenge at appropriate forum..
