M/S. S.P. Singla Constructions Private Limited vs. The State Of Bihar

Held

The Court noted that the petitioner's Electronic Credit Ledger was blocked under Section 86A(1) of the Central Goods and Services Tax Rules, and that such blocking is permitted for one year. The respondent-Department, through the learned Government Advocate, submitted on instructions that the Electronic Credit Ledger was unblocked on 30.09.2024. In light of this submission by the respondent, the Court found that the writ petition had become infructuous. Therefore, the Court closed the writ petition, recording the submission of the respondent-Department.

Facts

The petitioner, M/s. S.P. Singla Constructions Private Limited, filed a writ petition before the Patna High Court challenging the blocking of its Electronic Credit Ledger. The blocking was done under Section 86A(1) of the Central Goods and Services Tax Rules. The petitioner argued that such blocking is permitted only for one year, implying that proceedings should be concluded within that period. The respondent was the State of Bihar, represented by the Joint Commissioner of State Tax, Patna Special Circle.

Key Issues

1. Whether the blocking of the petitioner's Electronic Credit Ledger under Section 86A(1) of the Central Goods and Services Tax Rules was valid, considering the implied time limit for such blocking. Petitioner's Contention: The petitioner contended that the blocking of the Electronic Credit Ledger is permissible only for a period of one year, and that proceedings should be initiated and concluded within this timeframe. Revenue's Contention: The respondent-Department, through the learned Government Advocate, submitted that the Electronic Credit Ledger of the petitioner has been unblocked on 30.09.2024.