TaxTMI 
TaxTMI 
TaxTMI 
The Hon’ble Supreme Court in the case of DEPUTY DIRECTOR, DIRECTORATE GENERAL OF GST INTELLIGENCE, DZU & ORS. Versus KINGS SECURITY GUARD SERVICES PRIVATE LIMITED THROUGH ITS DIRECTOR - 2025 (5) TMI 1519 - SC Order held that no interference was warranted vide exercise of jurisdiction under Article 136 of the Constitution of India and dismissed the SLP challenging the Delhi HC’s ruling against negative blocking of Electronic Credit Ledger in KINGS SECURITY GUARD SERVICES PRIVATE LIMITED Versus DEPUTY DIRECTOR, DIRECTORATE GENERAL OF GST INTELLIGENCE - 2024 (12) TMI 1513 - DELHI HIGH COURT.
Facts:
The Directorate General of GST Intelligence ('the Petitioner') had approached the Hon’ble Supreme Court against the judgment of the Hon’ble Delhi High Court, which had quashed the blocking of the Electronic Credit Ledger ('ECL') of Kings Security Guard Services Private Limited ('the Respondent'). The Petitioner had invoked Rule 86A of the Central Goods and Service Tax Rules, 2017 (“the CGST Rules”) to block the ECL despite there being a negative balance in the said ledger. The Delhi High Court, relying on its earlier decision in Best Crop Science Pvt. Ltd. Through Authorized Representative, Sh Raghav Agarwal, M/s. Jai Maa Enterprises, Hilbert Innovations Pvt. Ltd., M/s. Ndcon Constructions, GNG Electronics Pvt. Ltd. Kay Kay Overseas Corporation, Shri Balaji Polymers Through Its Proprietor Mr. Anil Kumar Versus Principal Commissioner, CGST Commissionerate, Meerut And Ors., Commissioner Of Central Tax And GST Delhi North & Ors., Principal Chief Commissioner CGST And CX, Delhi & Ors. Commissioner Of Delhi Goods And Service Tax & Anr., Sale Tax Officer Of Delhi Goods And Service Tax And Another. - 2024 (9) TMI 1543 - DELHI HIGH COURT, held such negative blocking as impermissible and quashed the same. Aggrieved, the Petitioner filed the present Special Leave Petition before the Supreme Court.
Issue:
Whether the negative balance of an ECL can be subjected to blocking under Rule 86A of the CGST Rules, 2017?
Held:
The Hon’ble Supreme Court in DEPUTY DIRECTOR, DIRECTORATE GENERAL OF GST INTELLIGENCE, DZU & ORS. Versus KINGS SECURITY GUARD SERVICES PRIVATE LIMITED THROUGH ITS DIRECTOR - 2025 (5) TMI 1519 - SC Order, held as under:
- Observed that, no case for interference was made out under Article 136 of the Constitution of India and dismissed the Special Leave Petition.
- Noted that, other remedies available to the Petitioner for recovery in accordance with law were kept open.
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