BharatTaxGST

M/S.Owaise Traders vs. The State Of Telangana

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WP/6128/2025HC TelanganaGSTCNR HBHC01012150202510 March 2025Bench: SUJOY PAUL,RENUKA YARA5 pages
For Petitioner: SRI B.KRISHNA REDDYFor Respondent: SRI SWAROOP OORILLA, LEARNED SPECIAL, GP FOR TAXES
AI SummaryAllowed

Facts

The petitioner's electronic credit ledger was blocked by the respondent without following the principles of natural justice. The petitioner sought to declare this action illegal and to unblock the ledger.

Held

The Court disapproved and set aside the action of unilaterally blocking the Electronic Credit Ledger. The respondents were granted liberty to proceed against the petitioner in accordance with law.

Key Issues

Whether blocking of the electronic credit ledger without adhering to natural justice principles is illegal. Whether the action is contrary to previous judgments of the High Court.

Sections Cited

Article 226

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
1.-.:'*- ) rl_ [3446 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Originat Jurisdiction) MONDAY, THE TENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 6128 OF 2025 Between: M/s.Owaise Traders, 1-4-5491D, Bholakpur, Hyderabad, Telangana, rep. by its Proprietor Sri Abdul Gaffar (GSTIN - 364lLPA3229Q1ZY). .....PETITIONER AND 1. The State of Telangana, Rep. by the Principal Secretary, Revenue (CT) Department, Secretariat, Hyderabad, Telangana. 2. The Assistant Commissioner (ST), Gandhinagar Circle, Secunderabad Division, Mayur Kushal Complex, beside Chermas, Abids, Hyderabad, Telangana. .....RESPONDENTS 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, or Order or Direction particularly one in the nature of Writ of Mandamus declaring the action of the 2nd respondent in blocking the use of input tax credit of petitioner's electronic credit ledger dated 11 .02.2025 for an amount of Rs.68,41 ,688/- as illegal and contrary to the judgment of this Hon'ble Court in Mis.Bhavani Oxides and Others Vs. State of Telangana and Others in W.P.Nos.1039012024 and batch dated 26.06.2024 and is in violation of the principles of natural justice and unsustainable in law, onsequently set aside the impugned action of blocking Credit Ledger made by the 2nd respondent on 11.02.2025 vide Rer'.No.813602250000155 for an amount of Rs.68,41 ,688/- (with negative balance). l.A.NO:1 OF 202s Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the 2nd respondent to unblock the Electronic Credit Ledger of the petitioner vide blocked on 11.02.2025 in Ref.No.BL3602250000155 for ren amount of Rs.68,41,6881 (with negative balance) vide GSTIN - 368XSPP3000l\/'1 24 of the petitioner immediate,ly. Counsel for the Petitioner : SRI B.KRISHNA REDDY Counsel for the Respondents : SRI SWAROOP OORILLA, LEARNED SPECIAL GP FOR TAXES

The Court made the following ORDER --- -----7 =- ' ,/ t-...

w THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION No.6128 of .2o25 ORDER: (Per t!rc Hon'ble the Acting Chief Justice Sujog Poul) Sri B.Krishna Reddy, learned counsel appea-rs for the petitioner and Sri Swaroop Oorilla, learned Special Government Pleader for State Tax appears for the 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 following the principles of natural justice, the point is squarely covered by the order passed by this Court in W.P.No.1O39O of 2024 and batch, decided on 26.06.2024. The petition may be disposed of in terms of the said order.

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' , t

2

4.

Accordingl.v, the Writ petition is disposed of, by reserving liberty to the respondents to proceed against the petitioner, in accordance r.l-i th law. No costs. MiscellarLeous petitions pending, if any, Sha1l stal,l closed. a To SA LS .L.LAKSHMI BABU //// AJs,-($itfrii'dEi#ffiH / , ) rE"rioru orrrcen

1.

The Principal Secretary, Revenue (CT) Department, Secretariat, State of Telangana at Hyderabad, Telangana

2.

The Assistanl. Commissioner (ST), Gandhinagar Circle, Secunrlerabad Division, Mayur Kushat Complex, beside Chermas, Abids, Hyderabad, Telangana.

3.

Two CCs to SRI SWAROOP OOR|LLA, LEARNED SPEC|AL Gp FOR TAXES, High Court for the State of Telangana at Hyderabad. [()UT]

4.

One CC to SFil B.KR|SHNA REDDY, Advocate tOiUCl

5.

Two CD Copi,:s O ^- lf

HIGH COURT DATE D : 1 010312025 ORDER WP.No.6128 ot 2025 DISPOSING OF THE W.P WITHOUT COSTS. (L .t,oe 1HE S14 16. ar: o 1i\ [ 3 ,ipn zoz5 -!' . .t t ,// -,/ pw 3 >\

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.