Court orders timely resolution for blocked credit account issue, avoiding tax return complications

The court directed the petitioner to file a representation challenging the blocking of their credit account due to alleged dealings with a non-existing entity. The court instructed the respondent to promptly decide on the representation to avoid inconvenience to the petitioner in filing returns, ultimately disposing of the writ petition with these directions to resolve the issue efficiently.

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Issues:
Blocking of credit account for availing Input Tax Credit due to alleged business dealings with a non-existing entity.

Analysis:
The petitioner filed a writ petition challenging the blocking of their credit account for availing Input Tax Credit, citing a letter issued by the respondents. The reason for blocking was the petitioner's alleged business dealings with a non-existing entity, M/s Jai Bharat Enterprises. The petitioner contended that the said entity was registered with the respondents and paid taxes, as evidenced by information from the respondents' portal. The court noted this discrepancy and opined that the writ petition should be disposed of promptly. It directed the petitioner to file a representation/objection before respondent no.2 regarding the existence of M/s Jai Bharat Enterprises within three days. Respondent no.2 was instructed to decide on the representation/objection by a specified date to prevent inconvenience to the petitioner in filing returns. Consequently, the court disposed of the writ petition with these directions to address the issue effectively and swiftly.

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