Rani Sati Smelters Private Limited Through Its Authorized Signatory Cum Director Nitin Bhalotia vs. The Union Of INDIA Through The Commissioner Of GST And Central Excise

Held

The Court noted that the primary prayer of the petitioner, seeking a direction to unblock its Input Tax Credit (ITC) from the Electronic Credit Ledger, had become infructuous. This was because Respondent No. 3, in its counter affidavit, had confirmed that the ITC had indeed been unblocked. Regarding the secondary prayer concerning the payment of interest, the Court held that the petitioner was at liberty to approach the concerned authority for the redressal of this grievance. The Court did not decide on the merits of the interest claim but rather directed the petitioner to pursue it through the appropriate administrative channels. No specific provisions of law were discussed in relation to the interest claim, nor were any precedents cited.

Facts

The petitioner, Rani Sati Smelters Private Limited, 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. The respondents filed a counter affidavit stating that the ITC had been unblocked. The petitioner's counsel then raised a prayer concerning the payment of interest. The Court noted that the petitioner was at liberty to approach the concerned authority for redressal of its grievance regarding interest.

Key Issues

1. Whether the petitioner is entitled to a direction for the unblocking of its Input Tax Credit (ITC) available in the Electronic Credit Ledger, which was blocked by Respondent No. 3. Petitioner's Argument: The petitioner sought a direction for the unblocking of its ITC. Revenue's Argument: The respondents, through a counter affidavit filed by Respondent No. 3, stated that the ITC had already been unblocked, rendering this prayer infructuous. 2. Whether the petitioner is entitled to the payment of interest. Petitioner's Argument: The petitioner's counsel raised a prayer with respect to the payment of interest. Revenue's Argument: No specific argument is recorded for the revenue on this point, other than the Court's observation that the petitioner is at liberty to approach the concerned authority.