Negative blocking of taxpayer's electronic credit ledger under CGST Rules-action held unauthorised; unblocking order upheld, SLP dismissed.

The dominant issue was whether tax authorities could sustain "negative blocking" of a taxpayer's electronic credit ledger under the CGST Act and Rules. The HC held that such blocking was not authorised by the statutory scheme governing maintenance and blocking of the electronic credit ledger and therefore the administrative action was unsustainable, directing unblocking in accordance with the Act and Rules. The SC found no ground to interfere under Art. 136 with the HC's determination and dismissed the SLP, leaving the unblocking direction undisturbed.

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The Supreme Court, in a Partial Court Working Days Bench comprising Hon'ble Mr. Justice Sudhanshu Dhulia and Hon'ble Mr. Justice Joymalya Bagchi, heard the Special Leave Petition. After considering the submissions, the Court "condoned delay" but held that "no case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India." Consequently, the Special Leave Petition was dismissed. The Court clarified that "other remedies of the petitioners for recovery in accordance with law are kept open." Pending applications, if any, were disposed of.

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