BharatTaxGST

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

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WP/36827/2024HC TelanganaGSTCNR HBHC01071701202429 January 2025Bench: SUJOY PAUL,RENUKA YARA4 pages
For Petitioner: SRl. B. KRISHNA REDDYFor Respondent: SRI SWAROOP OORILLA, Special Govt Pleader for State Tax
AI SummaryAllowed

Facts

The petitioner's input tax credit (ITC) electronic credit ledger was blocked by the respondents. The petitioner sought to unblock the ledger, arguing the action was illegal and contrary to a previous High Court judgment.

Held

The High Court allowed the writ petition, setting aside the impugned action of blocking the credit ledger. The court directed the respondents to proceed in accordance with law if necessary.

Key Issues

Whether the blocking of the petitioner's input tax credit ledger was illegal and in violation of principles of natural justice, and if it was covered by a prior High Court ruling.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[ 3446 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) WEDNESDAY ,THE TWENTY NINTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 6827 0F 2024 M/s.Shah Enterprises, 1-4-554t7, Bholakpur, Hyderabad, Telangana, rep by its Proprietor Sri Mohammed Abrar Pasha. ...PETITIONER AND 1 2 3 The State of Telangana, represented by the Principal Secretary, Revenue ICT) Deoartment. Secretariat, Hyderabad, Telangana. il"'!Gi; iai Ofri."r, Gandhinagar Circle. Secunderabad Division l\'4ayur Kushal Complex, beside Chermas,-Abids, Hyderabad, Telangana The Assistant commissioner (sT), Mahankali Street Crrcle. Secunderabao Dl;is;;: -ffiyri - kuinat complei, beside chermas, Abids, Hvderabad, Telangana. ...RESPONDENTS Petition under Article 226 o1 lhe 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 and 3rd respondents in blocking the use of input tax credit of petitioner's electronic credit ledger dated 10.01 .2024 Blocked credit Ledger and simultaneously the action of the Blocking CreditLedgerbythe3rdrespondentdated20.12.2024foranamountof Rs.7,98,90,000lasilleg4a4d-contrarytothejudgmentofthisHon'bleCqqrtln M/s.Bhavani - oxides -and -others -vs.-state of Telangana and others - w.p.Nos..l039 012024 and batch dated 26.06.2024 and is in violation of the principles of natural justice and unsustainable in law, consequently set aside the impugned action of blocking Credit Ledger made by the 2nd respondent on Between: 10.o'l .2024 and the brocking of Eleclronic credit Ledger by the 3rd respondent on 2O.12.2024 for an amount of Rs.7,98,90,000/- lA NO: 1 OF 2024 Petition under Section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be pleased to direct the respondent Nos.2 and 3 to unbrock the Erectronic credit Ledger vide GSTIN - 36BXSPP3000nfiz4 of the petitioner immediatery, pending disposar of the Writ Petition Counsel for the Petitioner: SRl. B. KRISHNA REDDY Counsel for the Respondents: SRI SWAROOP OORILLA, Special Govt Pleader for State Tax

The Court made the following: ORDER 7

7 THE HON'BLE THE ACTING CHIEF JUSTICE SUJOY PAUL THE HON'BLE SMT. JUSTICE RENUKA YARA WRIT PETITION No.36 a27 of2024 oRDER (Per the Hon'ble the Acting Chief Justice Sujoy Paul) Sri B. Krishna Reddy, learned counsel for the petitioner and Sri Swaroop Oorilla, Iearned Special Government Pleader for State Tax, for the resPondents'

2.

Learned counsel for the parties at the outset submits that this matter is covered by recent common order passed by this court on 26.06.2024 in W'P'No'1039O of 2024 and batch and it may be disposed of in same terms'

3.

In view of consensus arrived at by the parties' this Writ Petition 1s allowed setting aside the impugned action of the respondents, in W.P.No. 1O390 of terms of common order dated 26 '06 2024 1n 2O24 and batch. Liberty IS reserved to the Department to proceed against the petltloner ln accordance with law Interlocutory applications, if any pending' shall also stand closed . T. TIRUMALA DEVI REGISTRAR ASSIST NT ,// CTION OFFICER To, The Principal Secretary' Revenue (CT) Department' Secretariat' Hyderabad ' +i5tn3[1,,orricer:f Tf :1[x?f '^?il,lll*?3:Y:3:[1?x',,?L"i?i:",']lll Kuinal Compl* besid^e unctt,ii fi;ffik;l, Streer Circte, Slecunderabad lffi S';,'^111',??,Ts: i3s;i'\ :i,' n ll !io'3' i ri"l.|Tl ii n n i o'' H v d e ra b a d' 3{:i#:*"'5'*',:{?"s,!i$ffi Fi$j;5iffi 3lo-ErAXHeh 1 2 3 4 5 AND No costs. \ a r3 6. Two CD CoPies UB$

I HIGH COURT DATED:2910112025 ORDER WP.No.36827 ot 2024 1 0 FEB 2025 2 o6. 1HE S I,a /'4' ($f' lo * trl,-t CHgC ALLOWING THE WRIT PETITION WITHOUT COSTS or-l t I /. W

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.