The Commissioner, or an officer authorized by him, not below the rank of Assistant Commissioner, must have "reasons to believe" that credit of input tax available in the electronic credit ledger is either ineligible or has been fraudulently availed by the registered person, before disallowing the debit of amount from electronic credit ledger of the said registered person under rule 86A. The reasons for such belief must be based only on one or more of the following grounds:
i) The credit is availed by the registered person on the invoices or debit notes issued by a supplier, who is found to be non-existent or is found not to be conducting any business from the place declared in registration.
ii) The credit is availed by the registered person on invoices or debit notes, without actually receiving any goods or services or both.
iii) The credit is availed by the registered person on invoices or debit notes, the tax in respect of which has not been paid to the government.
iv) The registered person claiming the credit is found to be non-existent or is found not to be conducting any business from the place declared in registration.
v) The credit is availed by the registered person without having any invoice or debit note or any other valid document for it.
Also, such restriction shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction.