M/S Leadstone Energy Limited vs. Superintendent CGST And Cx And Others
Held
The Court held that the order dated January 22, 2021, blocking the petitioner's electronic credit ledger, has ceased to have any effect and is no longer valid in the eyes of the law. This decision is based on the fact that more than one year has passed since the date of the blocking order, and Rule 86A(3) of the WBGST Rules, 2017, stipulates that such an order ceases to have effect after one year. Consequently, the petitioner is entitled to the benefit of operating their electronic credit ledger. The Court directed the concerned respondent to take appropriate steps for unblocking the electronic credit ledger. The benefit of this order is confined to the petitioner only. No other issues were expressly left undecided.
Facts
The petitioner, M/s. Leadstone Energy Limited, filed a writ petition before the Calcutta High Court challenging an order dated January 22, 2021, passed by the respondent-officer, the Superintendent, CGST & CX, which blocked the petitioner's electronic credit ledger. The petitioner sought a direction for the unblocking of this ledger. The blocking order was issued under Rule 86A(3) of the WBGST Rules, 2017. The petition was heard on February 14, 2022.
Key Issues
1. Whether the order dated January 22, 2021, blocking the petitioner's electronic credit ledger, continues to have effect after the expiry of one year from its date, in light of Rule 86A(3) of the WBGST Rules, 2017? The petitioner argued that the blocking order has ceased to have effect as more than one year has passed since its issuance, as stipulated by Rule 86A(3) of the WBGST Rules, 2017. The petitioner contended that they are therefore entitled to operate their electronic credit ledger. The CGST authorities' arguments are not recorded in the judgment.
Sections Cited
Rule 86A(3)
AI-generated summary — verify with the full judgment below
14-02-2022 Item No.15 Subrata IN THE HIGH COURT AT CALCUTTA Constitutional Writ Jurisdiction Appellate Side WPA No.9723 of 2021 M/s. Leadstone Energy Limited -vs- Superintendent, CGST & CX, Range-III, BBD Bag-II Division, Kolkata North Commissionerate & Ors.
Mr. Sandip Choraria Mr. Rajarshi Chatterjee …for the petitioner Mr. Vipul Kundalia Ms. S. Majumder Mr. A. Roy …for CGST authorities Heard learned advocates appearing for the parties.
In this writ petition, petitioner is making prayer for relief/direction upon the respondent concerned to unblock the electronic credit ledger of the petitioner which was blocked by the respondent-officer concerned by an order dated January 22, 2021.
In view of Rule 86A(3) of the WBGST Rule, 2017 such order ceases to have any effect after expiry of one year from the date of such order of blocking and, admittedly, in this case, today more than a year has been passed. In view of this fact, I hold that the aforesaid impugned order dated January 22, 2021, blocking the electronic credit ledger of the petitioner ceased to have any effect and has no force in the eye of law at present and petitioner is enti
The judgment continues below.
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