Meaningful pre-decisional hearing is required before input tax credit blocking; inadequate notice invalidates Rule 86A action.
Case-Laws
GST
Rule 86A requires a meaningful pre-decisional opportunity before input tax credit is blocked. Where a claimant must produce records and substantiate the credit claim, a three-day notice is insufficient and reduces the hearing requirement to an empty formality. Administrative and quasi-judicial action must be right, just and fair, rather than arbitrary or oppressive; denial of fair hearing may render the action void from inception. The High Court quashed the blocking order and consequential actions, directed unblocking of the credit, and permitted fresh action only after an adequate opportunity to produce records and be heard.
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