M J Gold Vs Joint Commissioner of State Tax
Date: September 18, 2023
Subject Matter
Electronic Credit Ledger cannot be blocked without giving an opportunity for a hearing
Summary
The case of M J Gold vs. Joint Commissioner of State Tax dealt with the blocking of the petitioner's electronic credit ledger without granting an opportunity for a hearing. The petitioner, M J Gold, received a communication informing them about the blocking of their input tax credit without being provided an opportunity to present their case. Their counsel argued that this lack of due process violated their rights. The government pleader acknowledged the omission in the due process. The Kerala High Court disposed of the writ petition with specific directions, instructing the petitioner to appear before the first respondent with all relevant documents and compelling the first respondent to take a fresh decision in accordance with the law. If a decision was delayed or unable to be reached on that day, the petitioner’s electronic credit ledger would be unblocked to facilitate the filing of returns.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petition has been filed by the petitioner impugning Ext.P6 communication dated 4.9.2023 and Ext.P7 order blocking the electronic credit ledger of the petitioner.
2. The petitioner has been informed vide Ext.P6 dated 4.9.2023 that input tax credit of Rs.9,58,000/- was blocked for the petitioner’s GST registration number (GSTIN 32AAOFM7935N1ZM). The learned counsel for the petitioner submitted that no opportunity was afforded to the petitioner before issuing the communication dated 4.9.2023, Ext.P6, and blocking of his credit ledger as per Ext.P7 on the same date.
3. Learned Government Pleader on instructions, submits that, in fact, the petitioner was not afforded any opportunity before issuing communication, Ext.P6, and order, Ext.P7.
4. Considering the aforesaid facts, the writ petition is disposed of with a direction to the petitioner to appear before the first respondent at 3.00 p.m. tomorrow (20.09.2023) with all relevant documents, for the first respondent to take a fresh decision, in accordance with law. If the decision making process is delayed or the first respondent is unable to take a decision tomorrow, the petitioner’s electronic credit ledger shall be unblocked to enable the petitioner to file its return. The first respondent shall make earnest efforts to pass fresh orders as above tomorrow itself.
With the aforesaid directions, the writ petition stands finally disposed of. Pending interlocutory applications, if any, in the writ petition would stand dismissed.