2021 (10) TMI 522 - HC - GST

Court lifts temporary block on Electronic Credit Ledger, emphasizes timely action and cooperation.

V.P. Thangam Traders Versus The Assistant Commissioner (ST), Chennai

V.P. Thangam Traders Versus The Assistant Commissioner (ST), Chennai - TMI Issues:Blocking of credit in the Electronic Credit Ledger under the Central Goods and Services Tax Act, 2017.Analysis:The judgment pertains to a writ petition concerning the blocking of credit in the Electronic Credit Ledger under the Central Goods and Services Tax Act, 2017. The counsel for the petitioner highlighted the proceedings initiated under Section 74 of the CGST Act, leading to the recovery of the disputed credit from the petitioner. On the other hand, the Revenue counsel acknowledged the factual position and assured the unblocking of the Electronic Credit Ledger within a week due to a technical glitch. Consequently, the Revenue counsel's commitment to unblock the ledger led to the closure of the writ petition. The court ordered the temporary blocking of the Electronic Credit Ledger to be lifted within a week, disposing of the petition with no costs imposed. The matter was listed for compliance reporting on a specified date.This judgment showcases a swift resolution of the issue at hand, emphasizing the importance of timely action and cooperation between the parties involved. The court's intervention ensured the prompt unblocking of the Electronic Credit Ledger, addressing the petitioner's concerns effectively. The acknowledgment of a technical glitch causing the delay exemplifies the practical challenges encountered in implementing tax-related processes. By recording the Revenue counsel's commitment and issuing a compliance reporting date, the court maintained oversight to ensure adherence to the resolution timeline. Overall, the judgment reflects a pragmatic approach to resolving tax disputes and upholding the principles of efficiency and accountability in administrative actions.