Lipika Tech Private Limited vs. Union Of INDIA & Ors.

W.P.(C)/3652/2024HC DelhiGSTCNR DLHC01012607202402 December 2024Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE DHARMESH SHARMA2 pages

For Petitioner: Mr. Jatin Harjai and Mr. Mohit Kumar Soni, AdvsFor Respondent: Mr. Ajay Jain, SPC along with Ms. Bijay Lakshmi, Mr. Krishna Sharma, Mr. Manoj Gautam, Mr. M.N. Mishra and Mr. Manoj Sharma, Advs. for R-1. Mr. Rajeev Aggarwal, ASC with Mr. Shubham Goel, Adv for R-2. Mr. Aakarsh Srivastava, SC along with Mr. Anand Pandey, Adv. for R-3 & R-4

AI SummaryRemanded

Held

The Court declined to examine the challenge to the validity of Rule 86A of the Central Goods and Services Tax Rules, 2017. The reasoning was that the blocking of the petitioner's Electronic Credit Ledger (ECL), which was the immediate cause of the challenge, was set to expire on December 8, 2024, after a period of one year from its imposition. Therefore, the Court found no justification to delve into the broader validity of the Rule in this specific instance. The Court noted that the challenge to Rule 86A was left open to be examined in an appropriate case. The operative direction was that upon the expiry of the one-year period on December 8, 2024, the respondents shall be obliged to take appropriate remedial action. The writ petition was disposed of subject to these observations.

Facts

The petitioner, Lipika Tech Private Limited, challenged the blocking of its Electronic Credit Ledger (ECL) by the respondents. The blocking was implemented on December 8, 2023, and was subject to a one-year expiry period as per Rule 86A of the Central Goods and Services Tax Rules, 2017. The petitioner sought to challenge the validity of Rule 86A itself. The respondents included the Union of India and other authorities.

Key Issues

1. Whether the Court should examine the challenge to the validity of Rule 86A of the Central Goods and Services Tax Rules, 2017, given that the blocking of the petitioner's Electronic Credit Ledger (ECL) was set to expire on December 8, 2024? The petitioner argued for the examination of the validity of Rule 86A. The respondents did not record any specific arguments on this point in the judgment.

Sections Cited

Rule 86A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~32 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 3652/2024 & CM APPL. 15105/2024 (Interim Relief) LIPIKA TECH PRIVATE LIMITED .....Petitioner Through: Mr. Jatin Harjai and Mr. Mohit Kumar Soni, Advs. versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Ajay Jain, SPC along with Ms. Bijay Lakshmi, Mr. Krishna Sharma, Mr. Manoj Gautam, Mr. M.N. Mishra and Mr. Manoj Sharma, Advs. for R-1. Mr. Rajeev Aggarwal, ASC with Mr. Shubham Goel, Adv for R-2. Mr. Aakarsh Srivastava, SC along with Mr. Anand Pandey, Adv. for R-3 & R-4. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE DHARMESH SHARMA

O R D E R %

02.12.

2024

We take note of the challenge which stood raised to the blocking of the Electronic Credit Ledger [“ECL”] of the petitioner by the respondents, referable to Rule 86A of the Central Goods and Services Tax Rules, 2017 [“Rules”].

The blocking itself was done on 08 December 2023 and would thus expire upon a period of one year coming to an end, in terms of the said Rule. This is a digitally signed order. The authenticity of the order can be re-ver

The judgment continues below.

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