K.R.Jeyasudha vs. The Deputy Commissioner Of CGST And Central Excise

Facts

The petitioner, K.R.Jeyasudha, filed a writ petition challenging a demand letter dated 06.03.2026 issued by the Superintendent, CGST and Central Excise, Melur Range. The petitioner sought to quash this letter and direct the respondent to unblock Input Tax Credit (ITC) amounting to Rs. 3,81,636/-. The petitioner's counsel stated that the respondent blocked the entire ITC credit upon finding one entry related to a bill issued without an actual transaction. During the hearing, the petitioner expressed willingness to make a representation to the authorities for unblocking the Credit Ledger, and requested the Court to direct the authorities to consider it.

Held

The Court set aside the impugned order dated 06.03.2026 and remanded the matter back to the respondent for fresh consideration. The Court directed the petitioner to make a representation seeking the unblocking of the ITC Credit Ledger within one week of receiving a web copy of the order. Upon receipt of this representation, the respondent is to consider it and pass appropriate orders on merits and in accordance with law, expeditiously, after affording an opportunity of personal hearing to the petitioner. The Court did not decide on the merits of the blocking of ITC itself, but rather facilitated a process for its reconsideration.

Key Issues

1. Whether the blocking of the entire Input Tax Credit (ITC) by the respondent is justified, considering that only one entry pertained to a bill issued without an actual transaction? (Question of law and fact). Petitioner's contention: The petitioner argued that blocking the entire ITC due to a single erroneous entry is disproportionate. The petitioner is willing to make a representation to the authorities seeking the unblocking of the entire Credit Ledger, and requested the Court to direct the authorities to consider this representation. Revenue's contention: The learned Senior Standing Counsel for the respondents submitted that if a representation is made by the petitioner, it will be considered in accordance with law.