Madras HC says GST Appeal Stay Does Not Automatically Unblock ITC

Al-Madhina Steel Traders challenged blocking of ₹26.60 lakh ITC under Rule 86A after filing appeals against orders concerning alleged wrongful ITC availment. The Madras High Court held that the appellate pre-deposit stays recovery of the balance demand, but has no automatic effect on Rule 86A blocking; the taxpayer may separately seek unblocking, which must be considered by the Department.