M/S Kalpsutra Gujarat vs. The Union Of INDIA

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SCA/10562/2020HC GujaratGSTCNR GJHC24025930202025 June 2021Bench: HONOURABLE MS. JUSTICE BELA M. TRIVEDI,HONOURABLE DR. JUSTICE ASHOKKUMAR C. JOSHI2 pages

AI SummaryDismissed

Facts

The petitioner, M/s Kalpsutra Gujarat, filed a Special Civil Application before the Gujarat High Court challenging an order or action related to blocked Input Tax Credit (ITC). The respondents are the Union of India and other revenue authorities. The specific tax period and the exact nature of the blocked ITC are not detailed in the provided order. However, the core of the dispute revolved around the petitioner's inability to utilize certain ITC. The procedural history indicates that the matter reached the High Court via a Special Civil Application.

Held

The Court was informed by the learned advocate for respondents 3 and 4 that a letter dated 23.06.2021 had been placed on record. This letter indicated that the respondent had permitted the petitioner to take fresh ITC of Rs. 3,50,868/- (SGST) in lieu of the blocked ITC, pending the resolution of the issue of unblocking the said ITC. The learned advocate for the petitioner acknowledged receipt of this communication and sought permission to withdraw the petition. The Court, in view of the petitioner's request and the development of the situation, permitted the withdrawal of the petition. The Court did not delve into the merits of the original dispute regarding the blocked ITC or the legality of the blocking itself, as the petition was withdrawn.

Key Issues

1. Whether the petitioner is entitled to the unblocking of the Input Tax Credit (ITC) that has been blocked. This issue arises from the petitioner's grievance regarding the inability to utilize their ITC. The petitioner's argument, implicitly, is that the ITC should be available for use. The revenue's contention, as evidenced by their action, is that the ITC was legitimately blocked, though the specific grounds for blocking are not elaborated in the order. The resolution of this issue hinges on the interpretation and application of relevant GST provisions pertaining to the blocking and unblocking of ITC. No specific circulars or precedents were cited in the brief order.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/SCA/10562/2020 ORDER DATED: 25/06/2021 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 10562 of 2020 ======================================= M/S KALPSUTRA GUJARAT Versus THE UNION OF INDIA ======================================= Appearance: MR DHAVAL SHAH(2354) for the Petitioner(s) No. 1 MR ANKIT SHAH(6371) for the Respondent(s) No. 1,2,3,4 MR DEVANG VYAS(2794) for the Respondent(s) No. 1 PRIYANK P LODHA(7852) for the Respondent(s) No. 3,4 ======================================= CORAM: HONOURABLE MS. JUSTICE BELA M. TRIVEDI and HONOURABLE DR. JUSTICE ASHOKKUMAR C. JOSHI Date : 25/06/2021

ORAL ORDER (PER : HONOURABLE MS. JUSTICE BELA M. TRIVEDI)

Learned advocate Mr. Priyank Lodha for the respondent Nos. 3 and 4 has placed on record the letter dated 23.06.2021 and submitted that the respondent has permitted the petitioner to take fresh ITC of RS.3,50,868/- (SGST) in lieu of the blocked ITC until the issue of unblocking of the said ITC is resolved.

Learned advocate Mr. Dhaval Shah for the petitioner does not dispute to have received the said communication. He further seeks permission to withdraw the present petition at this juncture.

In view of the above, learned advocate Mr. Dhaval Shah is permitted to withdraw the petition at this juncture. The petition C/SCA/10562/2020 ORDER DATED: 25/06/2021 is dismissed as withdrawn. Notice is discharged. [ Bela M. Trivedi, J. ] [ A. C. Joshi, J. ] hiren

Reproduced from the public record of the Gujarat High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.