2022 (3) TMI 731 - HC - GST

Seeking withdrawal of the writ petition - Blocking of Input tax credit - revocation of suspension of registration of the petitioner - HELD THAT - The writ petition is dismissed as withdrawn leaving it open to the petitioner to pursue his representation before the respondent authorities relating to his grievance of blocking of Input Tax Credit lying in the Electronic Credit Ledger.

Summary

Issues:
1. Blocking of Input Tax Credit without determination of tax amount.
2. Suspension of registration without valid reason.
3. Petitioner's request for appropriate writs/orders/directions for justice.

Analysis:
1. The writ petitioner sought relief regarding the blocking of Input Tax Credit without any tax determination. The petitioner argued that the credit was legitimate based on valid invoices, transport documents, and payments via banking channels. The petitioner challenged the legality of blocking the credit without finalizing any proceedings. The court noted that the registration suspension had been revoked, leaving the credit blockage as the only unresolved issue.

2. The petitioner also raised concerns about the suspension of registration without a valid reason and without a hearing opportunity, which was alleged to violate Rule 21A of the Rules 2017. However, since the registration suspension had been lifted, the primary focus remained on the issue of blocked Input Tax Credit. The petitioner made representations to the authorities for the revocation of the credit blockage.

3. The petitioner, with the court's permission, sought to withdraw the writ petition to pursue the representation made to the concerned authority regarding the blocked Input Tax Credit. The court allowed the withdrawal of the petition, emphasizing that it did not waive any legal grounds available to the petitioner. The respondent's counsel acknowledged the petitioner's right to pursue the representation before the authorities, indicating that the representation would be considered in accordance with the law.

In conclusion, the High Court dismissed the writ petition as withdrawn, enabling the petitioner to address the issue of the blocked Input Tax Credit directly with the authorities. The judgment highlighted the importance of pursuing administrative remedies while preserving the legal rights and grounds available to the petitioner for seeking justice in the matter.