High Court directed department to disclose reasons for which electronic credit ledger was blocked

Vijay Jaiswal v. Assistant Commissioner [2022] (Calcutta)

The department blocked electronic credit ledger (ECL) of appellant without assigning reasons for such blocking. The appellant filed writ petition but the prayer for interim relief was not granted by the learned Single Bench. Therefore, it filed intra-court appeal and requested unblocking of ECL and restoration of input tax credit.

The Hon'ble High Court noted that ECL was blocked by the department without assigning reasons and the appellant would not be able to file objections as reason for blocking was not disclosed. However, the department could not be directed to unblock credit at this stage but the concerned authority can be directed to intimate reasons for which electronic credit ledger was blocked as this would meet the ends of justice and simultaneously protect the interests of revenue as well.

Therefore, the Court directed the department to disclose reasons for which ECL was blocked. The Court also directed the appellant to file objection on receipt of such information and department would pass order on merits after granting opportunity of personal hearing.

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Thanks

CA Rahul Gupta

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