Honourable Andhra Pradesh High Court made a judgement in case of Sugna Sponge & Power Pvt Ltd that Rule 86A of the CGST Rules, 2017, permits blocking ITC that was fraudulently availed, irrespective of whether it is currently available in electronic credit ledger. The term “such ITC” in Rule 86A refers to ITC availed wrongfully, not just ITC currently available in ledger.
Blocking of ITC
Pushkar Mer 