Madras High Court
A J Power Center vs Deputy Commissioner (St) on 28 April, 2025
Author: Krishnan Ramasamy
Bench: Krishnan Ramasamy
W.P.No.15143 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 28.04.2025
Coram
The Hon'ble Mr.Justice Krishnan Ramasamy
W.P.No.15143 of 2025
&
W.M.P Nos.17057 and 17061 of 2025
A J Power Center
Rep by its Authorised representative Varadharajan
1/160, Mount Poonamallee High Road
Ayyapanthangal
Chennai – 600 056 ...Petitioner
Vs.
1. Deputy Commissioner (ST)
Poonamallee Zone
Chennai
2. Assistant Commissioner (ST) (RAL)
Poonamallee Zone
Chennai
3. Joint Commissioner (ST)
Kancheepuram .... Respondents
Prayer: This Writ Petition filed under Article 226 of the Constitution of India
for issuance of a Writ of Certiorarified Mandamus to call for the records of the
first respondent herein in impugned Intimation No.NIL dated 19.06.2024,
04.07.2024, 08.08.2024 and 29.11.2024 blocking electronic credit ledger in
GSTIN:33AMFPV0455M1ZR as a beneficiary to the extent of Rs.1,91,66,672/-
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W.P.No.15143 of 2025
by the first respondent and quash the same and consequently direct the first
respondent to unblock the electronic credit ledger under Rule 86A due to
competition of proceedings u/s 74 by the second respondent.
For Petitioner : Ms.G.Vardini Karthik
For Respondents : Mr.V.Prashanth Kiran
Government Advocate (Tax)
ORDER
This Writ Petition has been filed to quash impugned Intimation issued by the first respondent dated 19.06.2024, 04.07.2024, 08.08.2024 and 29.11.2024 blocking electronic credit ledger in GSTIN:33AMFPV0455M1ZR and consequently direct the first respondent to unblock the electronic credit ledger under Rule 86A due to competition proceedings under Section 74 by the second respondent.
2. Mr.V.Prashanth Kiran, learned Government Advocate (Taxes) takes notice on behalf of the Respondents.
3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of admission stage itself.
4. The learned counsel for the Petitioner submitted that the petitioner 2/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am ) W.P.No.15143 of 2025 is engaged in the wholesale business of batteries and invertors and pursuant to the inspection under Section 67 of the Tamil Nadu Goods and Services Act, 2017, on 21.06.2024, by the Intelligence Wing, the first respondent based on the directions second respondent issued impugned intimations for blocking ITC to all the dealers alleging that they have been identified as 'Non-Existent'. It is also stated by the petitioner that the first respondent also issued a show-notice in Form GST DRC – 01 dated 26.02.2025 alleging that the petitioner had claimed input tax credit on certain goods purchased from some dealers who were nonexistent entities. The petitioner filed its reply on the same day stating that they are in possession of invoices for the goods received and paid the purchase price along with tax and the seller has also reported the corresponding outward supply in the returns. According to the petitioner, they have duly filed its returns and hence, they are entitled to claim input tax credit. Though the petitioner had filed detailed reply along with all supporting documents to prove the genuineness of the transactions, the respondent passed the impugned assessment order under Section 74 of the Act on 07.03.2025 holding that the petitioner is not entitled to claim input tax credit and raised a demand under Section 74 of the Act, but Electronic credit ledger was not unblocked and hence the petitioner has filed a petition before the first respondent on 13.03.2025 3/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am ) W.P.No.15143 of 2025 requesting the revenue to unblock the Electronic Credit Ledger, which is still pending. Hence, the petitioner has filed the present contempt petition.
5. Though the writ petitioner has sought for a larger relief, in the hearing learned counsel for writ petitioner submitted that it will suffice if a direction is given to the first respondent to consider the representation submitted by the petitioner dated 13.03.2025.
6. Accordingly, this writ petition is disposed with a direction to the first respondent to consider the representation sent by the petitioner dated 13.03.2025 on merits and in accordance with law, within a period of three weeks from the date of receipt of a copy of this order. Consequently, the connected miscellaneous petitions are closed. No costs.
28.04.2025 Speaking/Non-speaking order Index : Yes / No Neutral Citation : Yes / No gpa 4/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am ) W.P.No.15143 of 2025 To
1. The Commissioner of Prohibition and Excise,
1. Deputy Commissioner (ST) Poonamallee Zone Chennai
2. Assistant Commissioner (ST) (RAL) Poonamallee Zone Chennai
3. Joint Commissioner (ST) Kancheepuram 5/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am ) W.P.No.15143 of 2025 Krishnan Ramasamy,J., gpa W.P.No.15143 of 2025 28.04.2025 6/6 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am )