[Cites 2, Cited by 0]
Madras High Court
Tvl.Swastik Electricals vs The Assistant Commissioner [R.A.L on 17 March, 2026
Author: D.Bharatha Chakravarthy
Bench: D.Bharatha Chakravarthy
W.P(MD)No. 6828 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED :17.03.2026
CORAM:
THE HONOURABLE MR JUSTICE D.BHARATHA CHAKRAVARTHY
W.P(MD)No. 6828 of 2026
Tvl.Swastik Electricals,
rep. by its Proprietor P.Vimalraj Shahjee. ... Petitioner
Vs
The Assistant Commissioner [R.A.L],
O/o. The Deputy Commissioner Madurai (East),
Commercial Taxes Buildings,
Madurai – 20.
(Amended vide order dated 17.03.2026
in W.P.(MD) No.6828 of 2026) ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, praying this Court to issue a Writ of Mandamus, directing the
respondent herein to release the blocked input tax credit made in the
petitioner’s electronic credit ledger on 12.02.2026, 13.02.2026,
16.02.2026 and 17.02.2026, which is against the principles of Natural
Justice and without authority of law.
For Petitioner : Mr.A.Chandra Sekaran
For Respondent : Mr.R.Suresh Kumar
Additional Government Pleader
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W.P(MD)No. 6828 of 2026
ORDER
The writ petition is filed directing the respondents to release the
blocked input tax credit made in the petitioner's electronic credit ledger
on 12.02.2026, 13.02.2026, 16.02.2026 and 17.02.2026.
2. The contention of the learned counsel for the petitioner is that
even for any reason, if the respondent is of the view that the petitioner's
electronic ledger should be blocked, an opportunity of hearing is
mandatory. The learned counsel would rely upon the judgment of the
Hon’ble Division Bench of the Karnataka High Court in K-9-Enterprises
vs. State of Karnataka and others (Writ Appeal No. 100425 of 2023,
etc.).
3. Per contra, the learned Additional Government Pleader
appearing on behalf of the respondent would submit that it was found
that the seller of the petitioner was indulging in issuing fake transaction
certificates. Therefore, in order to prevent encashment of fake
transactions or to continue with further fake transaction, emergent action
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was needed and therefore, the petitioner's electronic credit ledger was
blocked. It is also found that the dealer, who is mentioned, is also
fictitious and non-existent.
4. I have considered the rival submissions made on either side and
perused the material records of the case.
5. It is true that when the impugned action results in visiting the
petitioner with civil consequences, certainly an opportunity of hearing
has to be given. At the same time, it can be seen that the petitioner has to
claim input tax credit in the ensuing month.
6. Therefore, the issue can be resolved by directing the petitioner
to make a representation to the respondent within one (1) week from the
date of receipt of the web copy of the order. In the said representation, all
contentions, including the pre-decisional hearing, can also be raised.
7. As and when the representation is made, the respondent is
directed to consider the same and pass a reasoned order, including
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unblocking of the input credit made, etc., depending on the merits of the
case, within two (2) weeks from the date of filing of the representation.
8. With the above directions, this Writ Petition is disposed of. No
costs.
NCC : Yes/No 17.03.2026
apd
To
The Assistant Commissioner [R.A.L],
O/o. The Deputy Commissioner Madurai (East),
Commercial Taxes Buildings,
Madurai – 20.
https://www.mhc.tn.gov.in/judis ( Uploaded on: 25/03/2026 12:00:12 pm )
D.BHARATHA CHAKRAVARTHY.,J.
apd
ORDER MADE IN
17.03.2026
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