What circumstances would the Commissioner be able to block an electronic credit ledger?

1. Statutory Provision: Rule 86A

2. Disallow Debits: The Officer, after being satisfied that conditions exist, may disallow the credits

3. Time Period: Blocking of ITC ceases after expiry of one year.
3.1 Gujarat High Court in Barmecha Texfab (P) Ltd. vs Comm. (2022)

4. Satisfaction to be based on credible material or information.
4.1 Allahabad High Court in North End Food Marketing (P) Ltd vs State of UP (2022)

4.2 Gujarat High Court in New Nalbandh Traders vs State of Gujarat (2022)

5. Blocking Future ITC? Negative Credit? Not sustainable.
5.1 Allahabad High Court in R.M. Dairy Products LLP vs State of UP (2021)

6. Can entire Credit be blocked? No
6.1 Bombay High Court in Dee Vee Projects Ltd. vs Union of India (2022)