Gujarat High Court
Barmecha Texfab Pvt. Ltd vs Commissioner, Govt. Of Gujarat on 12 January, 2022
Bench: J.B.Pardiwala
C/SCA/17567/2021 JUDGMENT DATED: 12/01/2022
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 17567 of 2021
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE J.B.PARDIWALA Sd/-
and
HONOURABLE MS. JUSTICE NISHA M. THAKORE Sd/-
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1 Whether Reporters of Local Papers may be allowed NO
to see the judgment ?
2 To be referred to the Reporter or not ? NO
3 Whether their Lordships wish to see the fair copy NO
of the judgment ?
4 Whether this case involves a substantial question NO
of law as to the interpretation of the Constitution
of India or any order made thereunder ?
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BARMECHA TEXFAB PVT. LTD.
Versus
COMMISSIONER, GOVT. OF GUJARAT
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Appearance:
MR AVINASH PODDAR, ADVOCATE for the Petitioner(s) No. 1
MR UTKARSH SHARMA, AGP for the State - Respondent(s).
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CORAM:HONOURABLE MR. JUSTICE J.B.PARDIWALA
and
HONOURABLE MS. JUSTICE NISHA M. THAKORE
Date : 12/01/2022
ORAL JUDGMENT
(PER : HONOURABLE MS. JUSTICE NISHA M. THAKORE)
1. The writ-applicant has invoked the extraordinary writ
jurisdiction of this Court under Article 226 of the Constitution of
India and has prayed for a direction to the respondent no.3 to
C/SCA/17567/2021 JUDGMENT DATED: 12/01/2022
unblock the Electronic Credit Ledger, more particularly, when
the period of one year as prescribed under sub-rule 3 of Rule
86A of the CGST/GGST Rules has elapsed from the date of order
of blocking of the Electronic Credit Ledger.
2. This Court, vide Oral Order dated 1 st December 2021, had
issued notice for final disposal. The order reads thus :
"The petitioner before this Court seeking to unlock the
Electronic Credit Ledger that the period as prescribed under
Sub Rule 3 of Rule 86A of the Central Goods and Service
Tax Rules, 2017 ("CGST Act" hereinafter) has elapsed.
Following prayers are made by the petitioner:
(a) to direct the respondent No.3 to unblock the
Electronic Credit Ledger as the period of one one year
as prescribed in sub-rule 3 of Rule 86A the
CGST/GGST Rules, has been elapsed from the date of
order of blocking Electronic Credit Ledger.
Issue Notice for final disposal returnable on 22.12.2021.
Over and above regular mode of service, service through the
speed post is permitted."
3. Today, when the matter is taken up for hearing, the
learned AGP Mr.Utkarsh Sharma has appeared on behalf of the
respondent authorities and has fairly stated that the period of
one year has elapsed in terms of sub-rule 3 of Rule 86A of the
CGST Rules, 2017 and GGST Rules, 2017.
C/SCA/17567/2021 JUDGMENT DATED: 12/01/2022
4. The rule itself has provided that the Electronic Credit
Ledger can be blocked for a period of one year. On expiry of a
period of one year, it would automatically get unblocked. In fact,
it was the duty of the authority concerned to permit the
assessee, i.e. the writ-applicant, to avail the input credit
available in his ledger. Once the statutory period comes to an
end, the authority has no further discretion in the matter, unless
a fresh order is passed. In the case on hand, it is very
unfortunate to note that despite the fact that the period of one
year elapsed, the authority did not permit the writ-applicant to
avail the credit available in his ledger. Even representation was
filed in this regard but the authority thought fit not to pay heed
to such representation.
5. We may further note that the authority did not permit the
writ-applicant to avail the input credit available in his ledger for
about more than two and a half months after the statutory life of
the order came to an end.
6. We make it clear that next time if we come across such a
case, then the concerned authority would be held personally
liable for the loss which the assessee might have suffered during
the interregnum period.
7. With the aforesaid, this writ-application is disposed of.
(J. B. PARDIWALA, J.)
(NISHA M. THAKORE, J.)
/MOINUDDIN
