Jharkhand High Court

M/S Sanjay Kumar Upadhyay vs Union Of India on 1 May, 2025

Author: Rajesh Shankar

Bench: Rajesh Shankar

                  IN THE HIGH COURT OF JHARKHAND AT RANCHI
                            W.P.(T) No. 5651 of 2024

            M/s Sanjay Kumar Upadhyay                                     ..... Petitioner
                                           Versus
            1. Union of India, service through the Secretary, Department of Revenue,
            Ministry of Finance, New Delhi
            2. Secretary, Department of Revenue, Ministry of Finance, New Delhi
            3. Assistant Commissioner, Central GST & Central Excise, Ranchi North Division,
            Ranchi
            4. Superintendent of Central Tax, CGST & CX, Range-II, Ranchi North Division,
            Ranchi                                                        ..... Respondents
                                            -----

CORAM HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE RAJESH SHANKAR

-----

For the Petitioner: Mr. Debashish Ghosh, Advocate For Respondent Nos.3-4: Mr. P. A. S. Pati, Sr. SC (CGST) Mr. Anurag Vijay, Jr. SC (CGST)

-----

06/01.05.2025 Issue notice to the respondent Nos. 3 & 4.

2. Mr. P. A. S. Pati, learned Sr. SC (CGST), accepts notice on behalf of the

respondent Nos. 3 & 4.

3. Prima facie, the action of the respondents in blocking of Electronic Credit

Ledger of the petitioner vide Annexure-4, which in fact is in the nature of a

negative blocking of the Electronic Credit Ledger to the extent of

Rs.-1,51,55,840/-, is impermissible in law as held by a Division Bench of this

Court in its order dated 04.10.2024 in W.P.(T): Filing No. 9927 of 2024 and

order dated 23.04.2025 in W.P.(T) No. 1907 of 2025 wherein this Court had

followed the judgment of the Telangana High Court in M/s. Laxmi Fine Chem

Vs. Assistant Commissioner, Malkajgiri and Ors. and other decisions of

the Gujarat High Court and Delhi High Court as well.

4. Therefore, negative blocking of input tax credit to the extent of

Rs.-1,51,55,840/- (Annexure-4) is stayed until further orders.

5. The aforesaid interlocutory application stands disposed of.

6. List this case on 09.07.2025 under the heading "For Hearing."




                                                     (M. S. Ramachandra Rao, C.J)



Satish/Rohit                                                (RAJESH SHANKAR, J)