Patron Commotrade PVT LTD Through Its Director Mohit Kumar Poddar vs. The Union Of INDIA Through The Commissioner Of GST And Central Excise
Held
The Court held that the primary prayer for unblocking of Input Tax Credit (ITC) was rendered infructuous as the respondent authority had indeed unblocked the ITC. Regarding the claim for interest, the Court observed that the petitioner is at liberty to approach the concerned authority for redressal of this grievance. The Court did not decide on the entitlement to interest but rather directed the petitioner to pursue this matter with the appropriate authority. No specific provision of law was discussed in relation to the interest claim, and the Court's observation implies that the statutory mechanism for such claims should be utilized. The issue of interest was not decided by the High Court itself.
Facts
The petitioner, Patron Commotrade Pvt. Ltd., filed a writ petition before the Jharkhand High Court seeking a direction to unblock its Input Tax Credit (ITC) available in the Electronic Credit Ledger. The ITC had been blocked by Respondent No. 3, the Directorate General of Goods and Service Tax Intelligence. A counter affidavit was filed by Respondent No. 3, stating that the ITC had been unblocked. The petitioner's counsel then raised a prayer regarding the payment of interest. The Court observed that the petitioner was at liberty to approach the concerned authority for redressal of this grievance.
Key Issues
1. Whether the prayer for unblocking of Input Tax Credit (ITC) is rendered infructuous given that the ITC has been unblocked by the respondent authority. This issue turns on the procedural developments during the pendency of the writ petition. The petitioner argued that the primary relief sought was the unblocking of ITC, which has now been granted. The revenue (respondents) did not explicitly argue on this point, but their counter affidavit confirmed the unblocking of ITC. 2. Whether the petitioner is entitled to claim interest on the ITC that was blocked. The petitioner argued for payment of interest. The revenue did not present any specific argument against this claim in the judgment.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No. 1990 of 2020 Patron Commotrade Pvt. Ltd. having its unit at Ramdas Oil Mills Area, Manifit, Jamshedpur through its Director namely Mohit Kumar Poddar.
--- Petitioner Versus
The Union of India through the Commissioner of GST & Central Excise having its office at Outer Circle Road, Bistupur, Jamshedpur.
Assistant Commissioner (Preventive), Central Goods and Service Tax and Central Excise, Headquarters, having its office at Outer Circle Road, Bistupur, Jamshedpur.
Directorate General of Goods and Service Tax, Intelligence, Bhubneshwar Zonal Unit through its Deputy Director having its office at Plot No. 27, Shahid Nagar, P.O. P.S. Shahid Nagar, District-Bhubneshwar ( Odisha)- 751007. 4. M/s Maithan Ispat Ltd., through its Managing Director having its office at Kalinga Nagar Industrial Complex, Dasamania, Jakhapura, P.O. P.S. and District-Jakhapura, Odisha-755026. --- Respondents
------ Coram: THE HON’BLE MR. JUSTICE RONGON MUKHOPADHYAY
THE HON’BLE MR. JUSTICE DEEPAK ROSHAN
-------- For the Petitioner
: Mr. Sumeet Gadodia, Advocate
: Mr. Ranjeet
The judgment continues below.
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