Bombay High Court
DDS JEWELS PRIVATE LIMITEDversusSTATE OF MAHARASHTRA THR. AGP OFFICE AND ANR
- Decided
- Disposal
- Disposed Off
Holding
By operation of law, the one‑year blocking period under Rule 86A ends on 7 October 2026, and the ECL must be unblocked from 8 October 2026.
Summary
DDS Jewels Private Limited filed a writ petition seeking the unlocking of its Electronic Credit Ledger (ECL) that had been blocked under Rule 86A of the Maharashtra Goods and Service Tax Act, 2017. The petitioner argued that the one‑year blocking period, which began on 7 October 2025, had expired on 7 October 2026 and that the ECL should therefore be unblocked. The State contended that the original order of 2 July 2025 had been set aside and a fresh show‑cause notice led to a new blockage on 7 October 2025, so the period was not yet over. The Court examined the language of Rule 86A(3) and held that, by operation of law, the one‑year period ends on 7 October 2026, and the ECL must be unblocked from 8 October 2026. Accordingly, the petition was dismissed and the respondents were directed to take the necessary action.
Issues considered
- Whether the one‑year period for blocking Input Tax Credit under Rule 86A of the MGST Act has expired.
- Whether a fresh show‑cause notice and subsequent blockage reset the period of restriction.
Legislation cited
- Maharashtra Goods and Service Tax Act, 2017
- Maharashtra Goods and Service Tax Rules — s. Rule 86A(3)
Subjects
- GST
- Input Tax Credit
- Electronic Credit Ledger
- Rule 86A
- Blocking and Unblocking
- Writ Petition
- Tax Law
Judgment
901-WP-1727-2026.doc
Digitally
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
signed by
PURTI
PURTI PRASAD
PRASAD PARAB
CIVIL APPELLATE JURISDICTION
PARAB Date:
2026.10.03
11:48:55
+0530
WRIT PETITION NO. 1727 OF 2026
DDS Jewels Private Limited … Petitioner
Versus
The State of Maharashtra and Anr. ... Respondents
__________________________
Mr. Brijesh Pathak a/w Mr. Dutraj Jain for the Petitioner.
Ms. Shruti D. Vyas, Addl. G.P. a/w Mr. A.R. Deolekar, AGP for Respondent –
State.
__________________________
CORAM : M. S. KARNIK AND
SANDESH D. PATIL, JJ.
DATED : 1st OCTOBER, 2026.
P.C. :
1. Heard learned Counsel for the Petitioner and learned Addl.
G.P. for Respondent. Learned Addl. G.P. submits that the Petitioner
proceeds on an incorrect premise that the period stipulated under Rule 86A
of the Maharashtra Goods and Serve Tax Act, 2017 ( “the MGST Act”) has
already expired and therefore Electronic Credit Ledger (“ECL”) needs to be
unlocked. The restrictions was placed on the ITC credit in the Electronic
Credit Ledger of the Petitioner on 2nd July, 2025. It was urged by the
Petitioner therefore that from 1st July, 2026 the restrictions would come to
an end by operation of law.
Purti Parab 1/2
901-WP-1727-2026.doc
2. Learned Addl. G.P. submits that the subsequent events are
material in the present case as the order dated 2 nd July, 2025 was set aside.
A fresh Show Cause Notice came to be issued and under Rule 86A of the
MGST Rules, Respondent No.2 locked the ECL of the Petitioner on 7 th
October, 2025. Therefore, the Petition deserves to be dismissed.
3. Learned Counsel for the Petitioner submits that in any case as
the period of blocking the ITC would come to an end on 7 th October, 2026,
the ECL needs to be unlocked. Learned Addl. G.P. submits that the period
is yet to be over.
4. We find that by operation of law the period of one
year will be over by 7th October, 2026. In any case by operation of law by
Rule 86A(3) of the MGST Rules, the ECL has to be unblocked from 8 th
October, 2026. In such view of the matter the Respondents to take
consequential action.
5. Writ Petition stands disposed of.
(SANDESH D. PATIL, J.) (M. S. KARNIK, J.)
Purti Parab 2/2
Checking your session…
Lawyer court records for this case
Associated through the court’s case reference.