Indian Kanoon - Search engine for Indian Law

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 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am ) 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 https://www.mhc.tn.gov.in/judis ( Uploaded on: 07/05/2025 11:47:49 am ) requesting the revenue to unblock the Electronic Credit Ledger, which is still pending. Hence, the petitioner has filed the present contempt petition.