Electronic Credit Ledger automatically
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Case Title |
BARMECHA TEXFAB PVT. LTD Vs COMMISSIONER, GOVT. OF GUJARAT |
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Court |
Gujarat High Court |
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Honorable Judges |
Justice J.B Pardiwala and Justice Nisha M.Thakore |
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Citation |
2022 (1) GSTPanacea 267 HC Gujarat R/SPECIAL CIVIL APPLICATION NO. 17567 of 2021 |
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Judgement Date |
12-January-2022 |
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Council for Petitioner |
Mr. Avinash Poddar |
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Council for Respondent |
Mr. Utkarsh Sharma |
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In Favor Of |
Petitioner |
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Section |
Sub-rule 3 of Rule 86A of the CGST Rules, 2017 and GGST Rules, 2017 |
The Gujarat High Court, Ahmedabad Bench, held that, it was the duty of the authority concerned to permit the assessee, i.e. the writ-applicant, to avail the input credit available in his ledger.
FACTS OF THE CASE
Brief facts of the case are that the Petitioner Electronic Credit Ledger had been blocked for a period of one year and after the period of One Year the same was not unblocked by the Revenue Department. Here, the writ-applicant has invoked the extraordinary writ jurisdiction of this Court under Article 226 of the Constitution of India and has prayed for a direction to the respondent no.3 to unblock the Electronic Credit Ledger, more particularly, when the period of one year as prescribed under sub-rule 3 of Rule 86A of the CGST/GGST Rules has elapsed from the date of order of blocking of the Electronic Credit Ledger.
Electronic Credit Ledger automatically
COURT HELD
The Court Held that Rule 86A of the CGST Rules, 2017 provided that the Electronic Credit Ledger can be blocked for a period of one year. On expiry of a period of one year, it would automatically get unblocked. In fact, it was the duty of the authority concerned to permit the assessee, i.e. the writ-applicant, to avail the input credit available in his ledger. Once the statutory period comes to an end, the authority has no further discretion in the matter, unless a fresh order is passed. In the case on hand, it is very unfortunate to note that despite the fact that the period of one year elapsed, the authority did not permit the writ-applicant to avail the credit available in his ledger.
Electronic Credit Ledger automatically
ANALYSIS OF THE JUDGEMENT
Credit Ledger can be blocked for a period of one year. On expiry of a period of one year, From the above case we can conclude the rule has provided that the Electronic it would automatically get unblocked. Once the statutory period comes to an end, the authority has no further discretion in the matter, unless a fresh order is passed.
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