M/S Balaji Agency vs. Union Of INDIA And Ors.
Original PDF →WPA/10207/2020HC CalcuttaGSTCNR WBCHCA108495202006 January 2021Bench: HON'BLE JUSTICE SHEKHAR B. SARAF3 pages
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Cause title — parties, addresses and appearances
17 06.01.2021
Sc
W.P.A. 10207 OF 2020
----------------------
(Through Video Conference)
,
M/s. Balaji Agency & Anr.
Vs.
Union of India & Ors.
,,
Mr. Arijit Chakrabarti
Mr. Nilotpal Chowdhury.
… For the Petitioners
Mr. Vipul Kundalia
Mr. Ravi Ranjan Kumar.
... For the UOI.
Mr. K. K. Maiti
Ms. Aishwarya Rajyashree.
…For the Respondent
Nos. 2 to 4.
This is an application under Article 226 of the
Constitution of India wherein the petitioners are aggrieved
by the blockage of their Input Tax Credit (hereafter the
ITC) under Rule 86A of the CGST Rules.
It is to be noted that by an order dated February
19, 2020 the ITC amount of Rs.1,16,59,296 (Rupees one
crore sixteen lakh fifty-nine thousand two hundred and
ninety-six) was blocked by the respondents authorities
on the ground that there was a difference in ITC between
the GSTR 3B and 2A Forms of Rs.3 crore (Rupees three
crore) approximately.
The
petitioners
replied
to
the
respondents
authorities by submitting that the difference indicated by
the authorities was actually less than the actual figure,
2
and most of the amount had already been reversed in the
financial year 2018-19 in March of 2019. They further
informed the respondents authorities that they shall
reverse the balance in the next month.
The petitioner has been able to show that the entire
amount of the difference has been reversed and
subsequently has written several representations to the
respondents authorities to unlock the amount that has
been blocked.
I have heard counsel on behalf of the parties and
perused the materials on record. It is clear from the
records that the ITC that has been blocked has already
been reversed by the petitioners.
In light of the same, the respondents authorities are
directed to take heed of the representation dated October
8, 2020 and if the submissions of the petitioners are
correct as per the paragraph 1(c) of the letter, the amount
should be unblocked.
The respondents authorities are directed to pass a
reasoned order within a period of two weeks from date of
communication of this order. With the above observation, the writ petition is disposed of. There shall be no order as to costs. Since no affidavit-in-opposition is called for, the allegations made in the writ petition are deemed not to have been admitted.
3 Urgent photostat certified copy of this order, if applied for, be given to the parties upon compliance of all necessary formalities.
(Shekhar B. Saraf, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.