M/S. Seja Chemicals vs. Assistant Commissioner
Held
The Court held that the blocking of the electronic credit ledger was done without following the principles of natural justice. Consequently, the impugned action was set aside.
Facts
The petitioner's input tax credit in their electronic credit ledger was unilaterally blocked by the respondents. This action was taken under Rule 86-A of the CGST Rules, 2017.
Key Issues
Whether the blocking of input tax credit under Rule 86A without adhering to principles of natural justice is valid.
Sections Cited
Rule 86A
AI-generated summary — verify with the full judgment below
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE ELEVENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO Between: M/s. Seja Chemicals, rep. by its Proprietor, Mr. Ganesh Maroo, # 307,6-167 and 168, Jai Durga Residency, Sudarshan Reddy Nagar, Chintal, Hyderabad- 5oo 055' ...PETrroNER AND '1 . Assistant Commissioner, Jeedimetla-ll Circle, Hyderabad.
State of Telangana, rep by its Principal Secretary to Government, Revenue (CT-ll) Department, Secretariat, Hyderabad.
Union of lndia, rep. by its Secretary, Government of lndia, tvlinistry of Finance, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi-l'10 001. ...RESPONDENTS [3411] WRIT PETITION NO: 24677 OF 2024 _ Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction - (a) declare the proceedings of 151 Respondent in blocking the input tax credit of Rs.19,96,192^ in electronic credit ledger on
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