Calcutta HC says Rule 86A Blocking Requires a Meaningful Hearing

SPL Steel Processors challenged the blocking of ₹4.43 crore of ITC on the ground that its purchases were genuine and that it had not been given an opportunity to rebut the allegation that suppliers were non-existent. 

Calcutta HC did not quash the Rule 86A action at this stage, but directed a comprehensive post-decisional hearing and a speaking order after considering the taxpayer's documents and bona fides.