2024 (5) TMI 758 - HC - GST

Unblocking the electronic credit ledger - blocked ITC - non-filing of returns over a period of one year - return defaulter under Section 46. The petitioner submits that the petitioner has been regular in filing returns and payment of tax. He submits that his client would be advised to make payment of outstanding dues, if any, resulting out of an adjudication proceeding. HELD THAT - Having regard to the developments that have been taken note of here-in-above, the grievance of the petitioner seems to have been redressed - the petition is disposed off.

Summary

Issues involved:
The issues involved in this case are the blocking of the electronic credit ledger of the petitioner u/s 46 for non-filing of GSTR-3B returns, the unblocking of the ITC initiated by the Revenue, and the liability of the petitioner to pay outstanding dues as per the order-in-original dated 30.12.2022.

Blocking of Electronic Credit Ledger:
The petitioner's electronic credit ledger was blocked due to non-filing of returns over a one-year period. The petitioner claimed to have filed regular returns but did not provide a categorical statement to that effect in the writ petition. The court directed the petitioner to file an additional affidavit with categorical statements regarding the filing of GSTR-2A and 3B returns. The matter was adjourned for further consideration based on the additional affidavit to be filed by the petitioner.

Unblocking of ITC by Revenue:
The Revenue informed the court that the unblocking of the blocked ITC had been initiated and was in progress. The taxpayer had been issued GSTR-3A notices for not filing GSTR-3B returns for specific periods. The Revenue highlighted that the taxpayer had outstanding dues amounting to Rs 57,74,533, which included wrongly availed ITC and short payments, along with applicable interest and penalties. The Revenue requested the court to direct the taxpayer to pay the outstanding dues as per the adjudication order dated 30.12.2022.

Liability of the Petitioner:
The Revenue acknowledged that steps had been taken to unblock the electronic credit ledger, addressing the grievance of the petitioner. However, the petitioner was reminded of the liability to pay tax, interest, and penalty as per the order-in-original dated 20.12.2022. The petitioner's senior counsel assured that the client would be advised to make payment of any outstanding dues resulting from the adjudication proceeding. Considering the developments and redressal of the petitioner's grievance, the court disposed of the writ petition.

This summary provides a detailed overview of the judgment, addressing each issue involved in the case.