Dadhichi Iron And Steel Pvt Ltd VS Chhattisgarh GST Through Commissioner

The petitioner in this case has filed a writ petition due to the issuance of a letter dated 16.09.2019, marked as Annexure P-1, by the respondent no.2. This letter effectively blocked the operation of the credit account, preventing the petitioner’s establishment from availing Input Tax Credit. This action by the respondents has prompted the petitioner to seek legal recourse through the filing of this writ petition.

The present writ petition has been filed in response to a letter dated 16.09.2019 (Annexure P-1) issued by respondent no.2, which effectively blocked the operation of the credit account for accessing Input Tax Credit for the petitioner’s establishment. The petitioner’s counsel argues that this action was taken without sufficient grounds.

The petitioner in the present writ petition has brought forth the issuance of a letter dated 16.09.2019 (referred to as Annexure P-1) by respondent no. 2, which has resulted in the blocking of their credit account for accessing Input Tax Credit specifically pertaining to the petitioner’s establishment. The crux of the petitioner’s argument, as presented by their counsel, centers around the sole reason cited for blocking their credit account, which is their purported engagement in business transactions with a non-existent entity named M/s Jai Bharat Enterprises, holding a GSTIN/UIN-23AROPR6237P1ZZ.

The petitioner’s counsel has highlighted to the court that the primary basis for the blockade of their credit account is their alleged association with this fictitious entity. They have directed the court’s attention to certain information retrieved by the petitioner, presumably to support their contention.

The essence of the petitioner’s grievance lies in the unilateral action taken by respondent no. 2, leading to the obstruction of their access to Input Tax Credit. This action has significant implications for the petitioner’s ability to conduct business efficiently and avail the benefits entitled to them under the relevant taxation laws.

In essence, the petitioner seeks judicial intervention to challenge the validity and rationale behind the decision to block their credit account. They contend that the grounds provided by respondent no. 2 lack merit and are unjustified, thereby warranting the court’s intervention to redress the grievance and restore their access to Input Tax Credit.

The present writ petition has been filed in response to a letter dated 16.09.2019, marked as Annexure P-1, issued by respondent no. 2. This letter blocked the operation of the credit account for availing Input Tax Credit specifically for the petitioner’s establishment. The petitioner’s counsel argues that the sole reason behind this action is the alleged business dealings between the petitioner and a supposedly non-existent entity, M/s Jai Bharat Enterprises, which holds a GSTIN/UIN-23AROPR6237P1ZZ.

The petitioner contends that the information retrieved from the respondents’ portal contradicts their claim. According to the petitioner’s downloaded data from the respondents’ portal, M/s Jai Bharat Enterprises is indeed a registered entity under the respondents and is actively paying taxes. Therefore, the issuance of Annexure P-1 appears to be inconsistent with the records maintained by the respondents themselves.

In essence, the petitioner asserts that the blocking of their credit account based on the alleged association with M/s Jai Bharat Enterprises is unjustified, given that the latter is a legitimate entity registered with the respondents and complying with tax obligations. This forms the crux of the petitioner’s argument presented before the Court.

The present writ petition stems from a letter dated 16.09.2019, referred to as Annexure P-1, issued by respondent no. 2. This letter blocked the operation of the credit account for availing Input Tax Credit for the petitioner’s establishment. The petitioner’s counsel argues that the sole reason for blocking the credit account is the alleged business dealings with a non-existent entity, M/s Jai Bharat Enterprises, which possesses a GSTIN/UIN-23AROPR6237P1ZZ. However, the petitioner’s counsel points out that information retrieved from the respondents’ portal indicates that M/s Jai Bharat Enterprises is a registered entity under the respondents and is actively paying taxes. Thus, the issuance of Annexure P-1 appears to contradict the respondents’ own records.

Considering these facts, the court opines that prolonging the writ petition serves no productive purpose. Instead, it suggests that justice would be better served by disposing of the writ petition with a directive for the petitioner to submit a representation or objection to respondent no. 2 regarding the contention raised.

The petitioner has filed a writ petition concerning the blocking of their credit account for availing Input Tax Credit, as per a letter dated 16.09.2019 (Annexure P-1) issued by the respondent no.2. The petitioner’s counsel argues that the sole reason for blocking the credit account is the alleged business dealings with a non-existent entity, M/s Jai Bharat Enterprises, with a GSTIN/UIN-23AROPR6237P1ZZ. However, the petitioner presents evidence from the respondent’s own portal showing that M/s Jai Bharat Enterprises is a registered entity paying taxes to the respondents, contradicting the basis for Annexure P-1.

Given these circumstances, the court deems it unnecessary to prolong the writ petition and directs the petitioner to file a representation/objection before respondent no.2 regarding the contention raised within 3 days of receiving the court’s order. Respondent no.2 is instructed to decide on the representation/objection by November 10, 2019, to ensure the petitioner faces no inconvenience in filing their return due by November 20, 2019.

With these observations and directions, the writ petition is disposed of.

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