Unblocking of E-way bill is possible only If the due Tax Amounts are Remitted: Kerala HC [Read Order]

The Kerala High Court held that the unblocking of the E-way bill is possible only if the due tax amounts are remitted.

The petitioners are contractors having registration as Class-‘C’ and obtained registration from the 1st respondent. The petitioners have successfully completed the works of various departments of the Government.

In the work schedule allotted to them for the said works, it was not stated that the amount due under the GST will be reduced at the time of disbursement of the bill amount. Hence, while clearing the bills, the GST amount was not reduced from the bill amount.

Now the 1st respondent has issued assessment orders under Section 62 of the GST Act directing the petitioners to pay tax for each work for the financial years 2017-18, 2018-19 and 2019-20 respectively and the petitioners are taking steps to challenge the said orders.

Since the tax was not paid as per Ext.P5, the respondents have blocked the GST registration of the petitioners and therefore, they are not in a position to purchase goods and to execute the works undertaken by them.

Single bench judge Alexander Thomas pronounced the judgment based on a writ petition filed against Revenue.

The court observed that the petitioners have not paid due tax amounts for the relevant periods and they do not file mandatory returns till day, blocking of E- way bill is made on account of this mandatory provision contained in the above said Rule and unblocking of E-way bill is possible only if the due amounts as envisaged in the above said Rule are remitted and the returns are filed up to date.

While disposing of the petition court further said that the petitioners to take necessary steps to ensure that due tax amounts are paid, so that, the default in that regard is not for more than a period of two months as envisaged in clause (b) of Rule 138E(1) of the Rules.