The Kerala High Court directed re-adjudication in the matter of blocking electronic credit ledger without granting the opportunity of hearing.
The present writ petition has been filed by the petitioner, M/s MJ Gold, impugning the communication and the order blocking the electronic credit ledger of the petitioner. The petitioner has been informed that input tax credit of Rs.9,58,000/- was blocked for the petitioner’s GST registration number.
The counsel for the petitioner submitted that no opportunity was afforded to the petitioner before issuing the communication and blocking of his credit ledger on the same date. The Government Pleader on instructions, submits that, in fact, the petitioner was not afforded any opportunity before issuing communication and order.
The electronic credit ledger is maintained in FORM GST PMT-02 for each registered person on the common portal and every claim of input tax credit is to be credited to this ledger.The input tax credit as self-assessed in the return by a registered person is credited to his electronic credit ledger. The only way the electronic credit ledger can be credited is through filing of returns.
Earlier the amount of transitional credit was also credited to the electronic credit ledger on filing of FORM GST TRAN-1 and FORM GST TRAN-2. It may be noted that last date for filing of these two forms has already expired long back. The amount available in the electronic credit ledger can be used for making any payment towards output tax under the CGST/SGTS/UTGST/IGST/ Cess Acts.
A Single Bench of Justice Dinesh Kumar Singh observed that “Considering the aforesaid facts, the writ petition is disposed of with a direction to the petitioner to appear before the first respondent at 3.00 p.m. 20.09.2023 with all relevant documents, for the first respondent to take a fresh decision, in accordance with law.”
The Court further directed that if the decision making process is delayed or the first respondent, Joint Commissioner of State Tax, is unable to take a decision tomorrow, the petitioner’s electronic credit ledger shall be unblocked to enable the petitioner to file its return. The first respondent shall make earnest efforts to pass fresh orders as above tomorrow itself.
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