Rule 86A. Conditions of use of amount available in
electronic credit ledger.-
(1) The Commissioner or an officer authorised by him
in this behalf, not below the rank of an Assistant Commissioner, having reasons
to believe that credit of input tax available in the electronic credit ledger
has been fraudulently availed or is ineligible in as much as-
a) the credit of input tax has been availed on the
strength of tax invoices or debit notes or any other document prescribed under
rule 36-
i. issued by a registered person who has been found
non-existent or not to be conducting any business from any place for which
registration has been obtained; or
ii. without receipt of goods or services or both; or
b) the credit of input tax has been availed on the
strength of tax invoices or debit notes or any other document prescribed under
rule 36 in respect of any supply, the tax charged in respect of which has not
been paid to the Government; or
c) the registered person availing the credit of input
tax has been found non-existent or not to be conducting any business from any
place for which registration has been obtained; or
d) the registered person availing any credit of input
tax is not in possession of a tax invoice or debit note or any other document
prescribed under rule 36,
may, for reasons to be recorded in writing, not allow
debit of an amount equivalent to such credit in electronic credit ledger for
discharge of any liability under section 49 or for claim of any refund of any
unutilised amount.
(2) The Commissioner, or the officer authorised by him
under sub-rule (1) may, upon being satisfied that conditions for disallowing
debit of electronic credit ledger as above, no longer exist, allow such debit.
(3) Such restriction shall cease to have effect after
the expiry of a period of one year from the date of imposing such
restriction."
