Dadhichi Iron And Steel PVT. LTD. vs. Chhattisgarh GST
Held
The Court held that it would be appropriate to dispose of the writ petition by directing the petitioner to file a representation or objection before the Assistant Commissioner (respondent no.2) within 3 days of receiving the order. This representation should address the contention regarding the existence of M/s Jai Bharat Enterprises. The Court further directed respondent no.2 to decide this representation by 10th November, 2019. This decision was aimed at preventing inconvenience to the petitioner concerning their upcoming tax return filing deadline of 20th November, 2019. The Court found that keeping the writ petition pending would not serve any fruitful purpose, and directing a swift resolution of the petitioner's grievance would meet the ends of justice.
Facts
The petitioner, Dadhichi Iron And Steel Pvt. Ltd., filed a writ petition challenging a letter dated 16.09.2019 issued by the Assistant Commissioner, State Tax (SGST), Division IV, Raipur. This letter blocked the operation of the petitioner's credit account for availing Input Tax Credit. The sole reason cited by the respondent for this action was that the petitioner was allegedly doing business with a non-existing entity, M/s Jai Bharat Enterprises, bearing GSTIN/UIN-23AROPR6237P1ZZ. The petitioner contended that information downloaded from the respondents' own portal indicated that M/s Jai Bharat Enterprises was a registered entity and was paying taxes, thus contradicting the basis of the impugned letter.
Key Issues
1. Whether the blocking of the petitioner's Input Tax Credit account is justified when the alleged non-existing supplier, M/s Jai Bharat Enterprises, is shown as registered and tax-paying on the respondents' own portal, thereby raising a question of law concerning the correctness of the revenue's action under the Goods and Services Tax regime? Contentions: Petitioner: Argued that the action of blocking the credit account is arbitrary and contrary to the revenue's own records, as M/s Jai Bharat Enterprises is demonstrably registered and paying taxes. Relied on the information downloaded from the respondents' portal. Revenue/State: No specific arguments were recorded for the revenue/state in the judgment.
Sections Cited
Not specified
AI-generated summary — verify with the full judgment below
1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR Writ Petition (T) No. 130 of 2019 Dadhichi Iron And Steel Pvt. Ltd. Through Miss Jyoti Sharma D/o Shri Deepak Kumar Sharma, Aged About 28 Years, R/o A-19, Sector Shankar Nagar Raipur, District Raipur, Chhattisgarh. Branch Head Dadhichi Iron Steel Private Limited As 17 And 18 Transport Nagar Bilaspur Road Rawa Bhanta, Near Banjari Mandir, 492001, Chhattisgarh ---- Petitioner Versus
Chhattisgarh GST Through Commissioner, Commercial, Tax GST Department, North Block, Sector-19, Atal Nagar, Raipur, Chhattisgarh
Assistant Commissioner, Office Of Commissioner, State Tax (SGST), Division IV, Raipur, District Raipur, Chhattisgarh ---- Respondents For Petitioner : Mr. Bhisma Ahluwalia, Advocate For State : Mr. Ayaz Naved, Govt. Advocate Hon'ble Shri Justice P. Sam Koshy Order On Board 22.10.2019
The reason for filing of the present writ petition is the issuance of letter dated 16.09.2019 Annexure P-1 by the respondent no.2 whereby the respondents have blocked the operation of the credit account for availing the Input Tax Credit so far as the petitioner establishment is concerned.
The contention of the counsel for the petitioner
The judgment continues below.
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