Bankas Manifold Trade Link vs. Union Of INDIA And 2 Ors.

Held

The Court noted that the petitioner's primary grievance was the blocking of their electronic credit ledger, which prevented them from filing their GST return for June 2025. The petitioner had argued this action violated natural justice principles and relied on a Supreme Court judgment. However, the respondents' counsel made a clear statement to the Court that all the petitioner's accounts have been defreezed. Considering this statement, the Court concluded that there was no existing cause of action to be pursued. Therefore, the writ petition was closed. The Court did not explicitly decide on the violation of natural justice but closed the case based on the subsequent resolution of the issue.

Facts

The petitioner, Bankas Manifold Trade Link, a proprietorship firm, filed a writ petition before the Gauhati High Court challenging the action of the respondents (Union of India and others, including the Assistant Director and Director of DGGI) in blocking its electronic credit ledger. The petitioner contended that this action was taken in gross violation of the principles of natural justice, as no opportunity of hearing was provided. Furthermore, the petitioner stated that this blockage prevented them from filing their GST return for June 2025. The petitioner relied on the Supreme Court's decision in State of Karnataka Vs K-9 Enterprise. The respondents filed an affidavit-in-opposition. During the proceedings, the respondents' counsel informed the Court that all accounts have been defreezed.

Key Issues

1. Whether the blocking of the petitioner's electronic credit ledger by the respondents was in violation of the principles of natural justice, specifically the right to a hearing, as contemplated under the relevant provisions of the GST law? 2. Whether the petitioner is entitled to relief given that the electronic credit ledger has been defreezed, thereby resolving the immediate impediment to filing GST returns? Petitioner's Contentions: The petitioner argued that the blocking of the electronic credit ledger was done without providing an opportunity of hearing, thus violating natural justice. They cited the Supreme Court's decision in State of Karnataka Vs K-9 Enterprise as precedent. The inability to file the June 2025 GST return due to this blockage was also highlighted as a significant grievance. Revenue's Contentions: The respondents filed an affidavit-in-opposition. Subsequently, their counsel informed the Court that all the petitioner's accounts have been defreezed, indicating a resolution of the issue.