Bindal Smelting PVT. LTD. vs. State Of U.P. And 2 Others

Facts

The petitioner, Bindal Smelting Pvt. Ltd., filed a writ petition before the Allahabad High Court challenging an action by the respondents (State of U.P. and others) under Rule 86A(1) of the CGST Rules, 2017. The specific action under challenge was the 'blocking' of input tax credit. During the proceedings, both the petitioner's counsel and the learned Standing Counsel for the respondents jointly stated that the blocking of input tax credit under Rule 86A(1) had been unblocked. Consequently, the petitioner indicated they would pursue other available remedies for any remaining grievances.

Held

The Court noted the joint submission by the counsel for the petitioner and the respondents that the blocking of input tax credit under Rule 86A(1) of the CGST Rules, 2017, had been unblocked. Based on this development, the Court acknowledged that the primary grievance raised in the writ petition, concerning the blocking of input tax credit, no longer subsisted. The petitioner's counsel stated that the petitioner would avail other remedies for any remaining concerns. Consequently, the Court found no further cause of action for the writ petition in its current form. The Court did not delve into the merits of the original blocking order or any other potential issues.

Key Issues

1. Whether the blocking of input tax credit under Rule 86A(1) of the CGST Rules, 2017, by the respondents has been rectified, rendering the present writ petition infructuous regarding this specific grievance. Contentions: Petitioner: Submitted that the blocking of input tax credit under Rule 86A(1) was the primary grievance. With the unblocking of the credit, this specific cause of action no longer survives. The petitioner reserves the right to pursue other remedies for any other outstanding issues. Respondent: Concurred with the petitioner that the blocking of input tax credit under Rule 86A(1) has been unblocked, and therefore, the grievance related to this action is resolved.