Sri. Jeevan J. Neeralgi, learned counsel accepts notice for respondents 2 to 6.

2. Petitioner has filed the present writ petition challenging the act of blocking of credit ledger at Annexure-C and its continuance beyond one year. Petitioner has also sought for setting aside the intimation by respondent No.3 dated 02.02.2012 at Annexure-K and has consequently, sought for necessary direction to respondent No.6 to restore the credit to the electronic credit ledger.

3. Petitioner submits that the electronic credit ledger of the petitioner was blocked on 21.01.2020 and he draws the attention to Annexure-C and submits that in light of the mandate under Rule 86-A(3) of the CGST Rules, 2017, blocking of the electronic credit ledger shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction. It is submitted that till date, the credit ledger is blocked and accordingly, the same acts to the prejudice of the petitioner.

4. Learned counsel for the revenue submits that blocking of the electronic credit ledger was confirmed as per the order dated 06.01.2021, but however, he is unable to controvert the legal contention as regards continuance of such blocking the electronic credit ledger beyond the period of one year, which is impermissible in light of Rule 86-A(3).

5. Without entering into the merits of the order blocking of the electronic credit ledger, in light of Rule 86-A(3), restriction in blocking of the electronic credit ledger cannot be extended beyond the period of one year from the date of imposing such restriction and accordingly, in light of blocking having been made on 21.01.2020, its continuance in the present instant is impermissible in law.

6. Accordingly, it is declared that the action of the respondents in continuing the blocking of electronic credit ledger is set aside. Consequential orders and restoring credit to the electronic credit ledger to be made forthwith. However, it is clarified that respondent are at liberty to take such action as is permissible in law in connection with the assessment proceedings.

7. Accordingly, petition is disposed off.