M/S Veer Sales Corporation vs. State Of U.P. And 3 Others
Held
The High Court, without entering into the merits of the case, disposed of the writ petition. The Court directed respondent no. 2 to decide the petitioner's representation strictly in accordance with law. This decision was to be made after providing the petitioner with due opportunity of hearing. The Court emphasized that the decision should be taken expeditiously, preferably within a period of four weeks from the date of receipt of a copy of the order. The Court did not make any findings on the entitlement to the credit balance or the restoration of GST registration, leaving these substantive issues to be decided by respondent no. 2.
Facts
The petitioner, M/s Veer Sales Corporation, filed a writ petition seeking restoration of its GST registration and unblocking of a credit balance of Rs. 22,17,174.00. This credit balance accumulated due to a decrease in goods value caused by late clearance from customs. The petitioner had submitted a representation to respondent no. 2 on September 10, 2020, regarding this issue, which remained undecided. The respondents, represented by the State of U.P. and others, requested a reasonable time to consider the petitioner's grievances and decide the representation. The High Court heard arguments from both sides but did not delve into the merits of the case.
Key Issues
1. Whether the petitioner is entitled to a writ of mandamus directing the respondents to restore its GST registration and unblock the credit balance of Rs. 22,17,174.00, considering the accumulation due to late customs clearance. (Question of law and fact, turning on the interpretation of relevant GST provisions concerning credit balances and blocked accounts). 2. Whether the petitioner is entitled to a writ of mandamus directing the respondents to consider its pending representation expeditiously. (Question of law, concerning the duty of authorities to decide representations). Petitioner's contentions: The petitioner argued that its GST registration was blocked, and a significant credit balance of Rs. 22,17,174.00, accumulated due to circumstances beyond its control (late customs clearance affecting goods value), remained unblocked. They relied on the pendency of their representation submitted on September 10, 2020, before respondent no. 2, which had not been decided. Respondent's contentions: The respondents submitted that they required a reasonable time to consider the petitioner's grievances and decide the pending representation.
AI-generated summary — verify with the full judgment below
Court No. - 39 Case :- WRIT TAX No. - 42 of 2021 Petitioner :- M/S Veer Sales Corporation Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Sandeep Singh, Tarun Chawla Counsel for Respondent :- C.S.C.
Hon'ble Naheed Ara Moonis,J.
Hon'ble Dinesh Pathak,J.
Heard Sri Tarun Chawla, learned counsel for the petitioner and Sri Manu Ghidyal, learned counsel appearing on behalf of respondent nos.1 to 4.
Instant petition has been filed seeking following reliefs : “(i) Issue a writ, order or direction in the nature of mandamus directing the respondents that the GST No.09ADNPJ3914C1ZO may be restored and to unblock the credit balance amounting to Rs.22,17,174.00 also the petitioner intend for the refund of the same as accumulated due to goods value was decreased on the reason of late clearance from customs. (ii) Issue a writ, order or direction in the nature of ad interim mandamus directing the respondents to consider the representation of the petitioner pending before the respondents within stipulated time.”
Submission of learned counsel for the petitioner is that petitioner's GST has been blocked on account of credit balance to the tune of Rs.22,17,174.00, hence, he has mov
The judgment continues below.
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