- 1 - HC-KAR NC: 2026:KHC:8665 WP No. 4160 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 4160 OF 2026 (T-RES) BETWEEN: 1. M/S MOUNIKA TRADERS 1, GAVANAHALLI, CHIKKAMAGALURU (CHIKMAGALUR), KARNATAKA - 577 133 REPRESENTED BY ITS PROPRIETRIX MODALA LAXMI KUMARI C/O M N RAO, AGED ABOUT 60 YEARS … PETITIONER (BY SRI. SHREEHARI., ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF COMMERCIAL TAXES LGSTO-250 OFFICE OF ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, VANIJYA THERIGE BHAVANA, OPP R.T.O, NEAR ZP, CHIKKAMANGALURU - 577 102 2. DEPUTY COMMISSIONER OF COMMERCIAL TAXES (ADMINISTRATION) Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:8665 WP No. 4160 of 2026 DGSTO, MALNAD DIVISION SUVARNA KARNATAKA, VANIJYA TERIGE BHAVANA, NEAR 50FT. ROAD, GOPAL GOWDA LAYOUT, SHIVAMOGGA-577 205 3. COMMISSIONER OF COMMERCIAL TAXES MYSURU DIVISION GST BHAWAN, S1 AND S2, VINAYA MARGA, SIDDHARTHA NAGAR, MYSORE - 570 011 … RESPONDENTS (BY SRI. HEMAKUMAR, AGA) *** THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE ACTION OF RESPONDENT NO.1 IN BLOCKING THE PETITIONER'S ELECTRONIC CREDIT LEDGER UNDER RULE 86A OF THE CENTRAL GOODS AND SERVICES TAX RULES, 2017, VIDE REFERENCE NO. BL2908250000065 DATED 04.08.2025 AND REFERENCE NO. BL2912250000017 DATED 02.12.2025 (ANNEXURE-C1) AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV - 3 - HC-KAR NC: 2026:KHC:8665 WP No. 4160 of 2026 ORAL ORDER Sri. Hemakumar, learned counsel accepts notice for respondents. 2. Petitioner has called in question the validity of the action of respondents in blocking the petitioner's Electronic Credit Ledger in exercise of power under Rule 86A of the KGST/CGST Rules, 2017. 3. It is the case of the petitioner that blocking of credit ledger could not have been resorted to without affording an opportunity of hearing and has relied on the order passed in the case of K-9 Enterprises v. State of Karnataka - (2023) 153 taxmann.com 351 (Karnataka). It is further submitted that the said order has been upheld by the Division Bench in writ appeal. 4. Learned Additional Government Advocate submits that a post-decisional hearing requires to be extended. - 4 - HC-KAR NC: 2026:KHC:8665 WP No. 4160 of 2026 5. Insofar as invoking power under Rule 86A of the KGST/CGST Rules, 2017 at Annexure-B dated 01.08.2025, the same is to be treated as show cause notice and petitioner to make out reply to the same within two weeks from the date of receipt of certified copy of the order. 6. Accordingly, petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE VP