M/S, Dehra Metal Tech Private Limited vs. Union Of INDIA

CW/16166/2023HC RajasthanGSTCNR RJHC02079911202320 February 2025Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR3 pages

AI SummaryRemanded

Facts

The petitioner, M/s. Dehra Metal Tech Private Limited, filed a writ petition seeking directions to unblock its e-credit ledger and for a refund of Rs. 50,00,000/- debited from its account without following due procedure, along with interest. Searches were conducted at the petitioner's premises on 21.12.2022 and 24.08.2023. The e-credit balance was blocked on 06.01.2023. The petitioner alleges that the Deputy Commissioner debited Rs. 50,00,000/- from its account using its ID and passwords, forcing the Director's father to sign a DRC-03 under Rule 142 of the CGST Rules, 2017. The petitioner filed an application for refund on 15.09.2023.

Held

The Court noted that the first prayer concerning the unblocking of the e-credit ledger had become infructuous, as stated by the respondents' counsel that the blocking was only for one year. Regarding the second prayer for the refund of Rs. 50,00,000/- along with interest, the Court observed that the application filed by the petitioner-company was still pending. Consequently, the Court disposed of the writ petition by directing the concerned official of the State Goods and Services Tax Department to consider the petitioner's application expeditiously, in accordance with the law. The petitioner was to be granted an opportunity of hearing before a decision is taken. The Court recommended that a decision be taken not later than three months from the receipt of the certified copy of the order. The petitioner was also granted liberty to avail further remedies if aggrieved by the decision.

Key Issues

1. Whether the prayer for unblocking the e-credit ledger survives, given the respondents' submission that the blocking was for a period of one year. 2. Whether the petitioner is entitled to a refund of Rs. 50,00,000/- debited from its account along with interest, and if so, what is the procedural recourse. Petitioner's Contention: The petitioner argued that the debit of Rs. 50,00,000/- was made forcefully and without following the prescribed procedure, necessitating a refund with interest. The petitioner also sought the unblocking of its e-credit ledger. Respondents' Contention: The learned counsel for the respondents submitted that the blocking of the e-credit ledger was only for a period of one year, rendering that specific prayer infructuous.

Sections Cited

Rule 142

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2025:RJ-JP:7701-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 16166/2023 M/s, Dehra Metal Tech Private Limited, F-644, 618, Bhiwadi, Industrial Area, Khushkhera-301019 Through Its Authorized Signatory Shri Rakesh Kumar Jain S/o. Shri Sheel Kumar Jain, Aged About 63 Years, Resident Of 9/86, Shastri Gali, Viswas Nagar, Delhi-110032. ----Petitioner Versus 1. Union Of India, Ministry Of Finance (Department Of Revenue) Through Chief Secretary 3Rd Floor Jeevan Deep Building, Sansad Marg, New Delhi, Delhi 110001 2. State Of Rajasthan Through Chief Secretary, Finance Department, 1st Floor, Main Building, Government Secretariat, Janpath, Jaipur- 302005, India. 3. The Principal Commissioner, Central Goods And Services Tax, Alwar, Goods And Services Tax (GST), Commissionerate, Alwar, A Block, Surya Nagar, Alwar- 301001. 4. Commissioner Of Commercial Taxes Department, Rajasthan, Kar Bhawan, Ambedkar Circle, Janpath Road, C-Scheme, Jaipur. 5. Central Board Of Indirect Taxes And Customs, Through Chairman, Department Of Revenue, North Block, Delhi- 110001. ----Respondents For Petitioner(s) : Mr. Niraj Kumar Yadav For Respondent(s) : Mr. Raghav Sharma for Mr. Ajay Shukla Mr. Kartikeya Sharma for Mr. Sandeep Taneja, AAG HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR

Order 20/02/2025 AVNEESH JHINGAN, J.[ORAL]:-

This petition is filed seeking directions to the respondents to unblock the blocked e-credit ledger/credit balance of the

[2025:RJ-JP:7701-DB] (2 of 3) [CW-16166/2023] petitioner-company. Further prayer is sought for refund of the amount debited without following the procedure and to pay interest thereof.

The brief facts are that a search was conducted on 21.12.2022 at the premises of the petitioner-company. The summons issued were responded on 25.08.2023 and 29.08.2023. During pendency of the proceedings on 06.01.2023, the e-credit balance was blocked by the Goods and Services Tax Department. On 24.08.2023 again, search was conducted on the petitioner- company. It is pleaded that the Deputy Commissioner after having the ID and passwords of the petitioner-company, debited a sum of Rs.50,00,000/- from the account of the petitioner-company and forced the father of the Director to sign DRC-3 issued under Rule 142 of the Central Goods and Services Tax, Rules 2017. The petitioner-company on 15.09.2023 filed an application to the Additional Commissioner, Enforcement Wing, Rajasthan for refund of amount of Rs.50,00,000/- forcefully debited along with interest.

Learned counsel for the respondents submits that blocking of the e-credit ledger was only upto one year. Hence, the prayer no longer survives.

In view of the statement made by learned counsel for the respondent, first prayer in the petition has been rendered infructuous. With regard to the refund of the amount debited along with interest, the application filed by the petitioner-company is pending till date.

The petition is disposed of and the application filed by the petitioner-Company shall be considered by the official concerned

[2025:RJ-JP:7701-DB] (3 of 3) [CW-16166/2023] of the State Goods and Services Tax Department in accordance with law.

The petitioner-Company shall be granted an opportunity of hearing before deciding the application. It would be desirable that an expeditious decision is taken not later than three months from the date of the receipt of the certified copy of this order.

Needless to say the petitioner-Company shall be at liberty to avail remedies in accordance with law, if aggrieved of the decision. (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J RIYA/AARZOO/36 Whether Reportable: No

Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.