BharatTaxGST

M/S.Ahad Enterprises vs. The State Of Telangana

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WP/6219/2025HC TelanganaGSTCNR HBHC01012169202511 March 2025Bench: SUJOY PAUL,RENUKA YARA5 pages
AI SummaryPartly Allowed

Facts

The petitioner's electronic credit ledger was blocked by the respondent for an amount of Rs. 48,00,000/-. This action was taken without following the principles of natural justice.

Held

The High Court disapproved and set aside the unilateral blocking of the petitioner's electronic credit ledger. The Court reserved liberty for the respondents to proceed against the petitioner in accordance with law.

Key Issues

Whether the blocking of the electronic credit ledger without adhering to natural justice principles is illegal and unsustainable in law.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT FOR THE STATE OF TELANGANA [ 3446 ] AT HYDERABAD (Special Original Jurisdiction) TUESDAY ,THE ELEVENTH DAY OF MARCH TWOTHOUSAND AND TWENTY FIVE , PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUST]CE RENUKA YARA WRIT PETITION NO:6 219 0F 2025 Between: AND M/s-Ahad . En.terprises, 1-4-27ll1t1OS, Hyderabad,Telangana, rep. by its (GSTtN.36DAUPS2743Ml ZS). Colony, Bholakpur. Smt.Tanveer Sultbna ...PETITIONER Padmashali Proprietor 1. The State of Telanoana.,. Bep. by llre principal Secretary, Revenue (CT) Depa rtment, Secreta-riat, Hvdeiabit. i;ril;# "' 2' The Assistant commissioner (sr), -c"iJr'in"g* circre, secunderabad Division. Mavur Kushat comptbx,"o"iioJ br,'Jrrr., Auio.,-irio"i"iri, Telangana' ...RES'.NDENTS Petition under Articre 226 of the constitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to issue a writ, or order or Direction particurarry one in the nature of writ of Mandamus decraring the action of the 2nd respondent in brocking the use of input tax credit of petitioners electronic credit ledger dated.l 1.o2.2o2s for an amount of Rs.48,00,000/- as ifiegar and contrary to the judgment of this Hon,bre court in lVt/s.Bhavani oxides and others Vs. state of rerangana and others in w.P.Nos.1039012024 and batch dated 26.06.2024 and is in viorafion of the principles of naturar justice and unsustainabre in raw, consequenfly set aside the impugned action of brocking credit Ledger made by the 2'd respondent on 11.o2.2025 vide Ref.No.81360225000015 4 for an amount of Rs.48,00,000/- (with negative balance lA NO: 'l OF 2025 Petition unrje'Siection 151 CPC praying that in the cir:um';tances stated intheaffidavitfileci|lsupportofthepetition,theHighCourtmaybepleasedto directthe2ndrr:spcrndenttounblocktheElectronicCredit.edgerofthe petitioner blocked cr 11.02.2025 vide Ref'No'BL3602250000154 for an amount of Rs.48,00,000/- (rarith negative balance) vide GSTIN - 368(SP|)300OM1Z4 of the petitioner imnred a telY Counsel for the F eti:ioner: SRI' B' KRISHNA REDDY CounselfortheFl.espondents:SRlT.cHAlTNAYK1RAN,AGPRtP- SRI SWARIf,OP OOiiLiA, SPECIAL GOVT PLEADER I:OR STATE TAX

The Court made the following: ORDER

THE HON'BLE THE ACTING CHIEF WSTICE SUJOY PAT'L THE HOtrt'BLE SMT. JuSTICE RENUKA YARA WRIT PETITION l{o.6219 of 2O2s ORDER: (Per the Hon'ble the Acting Chief Justice Sujog paul) Sri B.Krishna Reddy, learned counsel appears for the petitioner and Sri T. Chaitanya Kiran, Iearned Assistant I t Government Pleader representing Sri Swaroop Oorilla, learned Special Government pleader for State Tax respondents.

2.

Learned counsel for the parties, during the course of hearing, fairly submit that since the Electronic Credit Ledger of the petitioner is blocked without folrowing the principres of natural justice, the point is squarely covered by the order passed by this Court in W.P.No.lO39O of 2024 and batch, decided on 26.06.2024. The petition in terms of the said order. may be disposed of 3. In view of the consensus arrived at, the action of the respondents in unilaterally blocking the Electronic Credit Ledger of the petitioner is disapproved and set aside. AND appearing for the 2

4.

Accordin,:Jl'r the Writ Petition is disposed of, by reserving liberty to the :-,: spondents to proceed against tlLe l:>etitioner, in accordance 'r,rtLL 1aw. No costs. Miscellarte,: u.s petitions pending, if any, shall stald closed. l P.Ch. I'IAGABHUSHAMBA / ASS}S'TAN'T REGISTRAR / //// to'',. ,n" Princil:'a secretary, Revenue (CT) Department' BM GJP (P. , If; 51111.1,rr t oommissioner (sr), GandNnagar circre, S ecurrderabad ' Di:.a; "tii;',i u:i{r tn iiCoiip'i"*,' b Jtio" cheimas' Abid s' Hv':lerabad' Telanoara 3 o#'ic il :; rr. B. KRIsHNA REDDY,-Advocate [oPUCl 4. rwo ccs t,: I;PECIAL iiji'EAillfiEffi ifEAb. EE .FoR'srprE rAX' Hish - clJririt t;i ii;,"t" orler,ngana, at Hvderabad [our]

5.

Two CD C,rt,i rs , . SEC]TION OFFICER Secretari at, HYderabad,

HIGH COUFIT DATED:11103t?-025 ORDER WP.No.6219 ,rf 2025 DISPOSIN(:i I]F THE WRIT PETITION WITHOUT CoSTS .1 l\ J* ) :) \". 14 IH€ S --t 11 or'( r z C 7 ( 2 Ltut M (n C \l \;+.- ,) ;\,{,. ):::)z'

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