Calcutta HC directs GST Dept to cancel Blockage of Credit Ledger on Expiration of Validity of Order after One Year–taxscan

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By Rasheela Basheer – On March 25, 2022 11:05 am

Calcutta High Court - Calcutta HC - GST Dept - Blockage - Credit Ledger - Expiration of Validity - Order - Taxscan

The Calcutta High Court has directed the GST department to cancel the blockage of Credit Ledger as the order for the same expired after one year.

The petitioner, Jai Venkatesh has challenged the impugned action of the respondents blocking credit ledger of the petitioner by order dated 24th November, 2020. The petitioner contended that in view of Rule 86A(3) of the West Bengal GST Rules, 2017, the impugned order of blockage of credit ledger in question has lost its force since the maximum period of validity of such order of blockage is one year from the date of imposing of such restriction.

Justice Md. Nizamuddin observed that the State respondents could not deny and dispute the submission of the petitioner so far as the expiry of the period of validity of the aforesaid order of blockage of credit ledger in question is concerned.

“Considering the submission of the parties, this writ petition is disposed of by holding that the aforesaid impugned order dated 24th November, 2020 as appears at page 12 of the writ petition has ceased to have any effect and has no force in the eye of law. It is clarified that this order is only confining to the aforesaid impugned order and will have no impact on any other relevant proceedings. The respondent concerned shall pass the effective order for unblocking of electronic credit ledger in question within seven days from date,” the Court said.

Jai Venktesh Concast Pvt. Ltd. & Anr vs The Assistant Commissioner of State Tax, Durgapur Charge & Ors.

CITATION: 2022 TAXSCAN (HC) 228To Read the full text of the Order CLICK HERE

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