SAVAN RETAILERS PRIVATE LIMITED VERSUS UNION OF INDIA, & ORS.

Withdrawal of cancellation of petitioner’s registration – input tax credit – GST Act – HELD THAT:- We direct the respondents to examine the petitioner’s grievance and to unblock the petitioner’s ITC balance, if the blocking is found to be unjustified. Decision in this regard should be taken positively within the next four working days.

List on 15.10.2019.

No.- W.P.(C) 10386/2019 and C.M. No. 42830/2019

Dated.- September 24, 2019

MR. VIPIN SANGHI AND MR. SANJEEV NARULA JJ.

Petitioner Through: Mr. Tarun Gulati, Sr. Advocate with Mr. Kishore Kunal and Mr. Pratush Chodhary, Advocates.  

Respondents Through: Mr. G.D. Sharma, Advocate for R-1. Ms. Sonu Bhatnagar and Ms. Venus Mehrotra, Advocates for R-2. Mr. Anuj Aggarwal, ASC, GNCTD with Mr. Deepak Shrivastava, Advocate.  

O R D E R

At the outset, learned counsel for the petitioner submits that the impugned show-cause notice dated 19.09.2019 issued by the respondents for cancellation of the petitioner’s registration under the GST Act has been withdrawn vide communication dated 23.09.2019 after considering the petitioner’s reply. To that extent, the relief prayed for in petition does not survive. Learned counsel for the petitioner, however, submits that the respondents have blocked the ITC of the petitioner which is evident from the screenshot produced by the petitioner from the portal of the respondents at page 75 of the writ petition. The same shows blocked credit balance as ₹ 58,16,444.00/-. The said credit has been blocked without any showcause notice, hearing or reasons, and no provision of law has been cited to justify the said blocking of the credit due to the petitioner.

Issue notice. Learned counsels accept notice on behalf of the respondents. We direct the respondents to examine the petitioner’s grievance and to unblock the petitioner’s ITC balance, if the blocking is found to be unjustified. Decision in this regard should be taken positively within the next four working days. However, in case, the respondents have any justification for the said blocking of the ITC of the petitioner, they shall file their reply explaining the reasons therefor within ten days from today with advance copy to counsel for the petitioner. The petitioner may file rejoinder thereafter.

List on 15.10.2019.

Dasti under the signatures of the Court Master.

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