Unblocking of Credit Ledger Directed as Assessee Was Unable to Make Pre-Deposit to File Appeal Due to Blocked Credit Ledger | HC
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- Last Updated on 22 December, 2024
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Case Details: Bum Bum Corporation v. State of Madhya Pradesh - [2024] 169 taxmann.com 360 (Madhya Pradesh)
Judiciary and Counsel Details
- Sanjeev Sachdeva & Vinay Saraf, JJ.
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Mukesh Agrawal & Ayush Gupta, Advs. for the Petitioner.
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R.D. Padraha, Govt. Adv. for the Respondent.
Facts of the Case
The petitioner was aggrieved by the action of the GST department whereby coercive measures had been taken for recovery of alleged outstanding demand for the period of 2018-19. It filed writ petition before the Madhya Pradesh High Court and contended that the demand was already challenged before the Appellate Authority and the said demand was set aside. However, a tax demand was created against petitioner and it was willing to deposit statutory pre-deposit amount.
High Court Held
The Honorable High Court noted that the petitioner intended to impugn the said order before the Appellate Tribunal but the Tribunal was not functioning. It was also submitted that by coercive measures, the Electronic Credit Ledger (ECL) had been blocked and bank account of the petitioner had been put on hold. The Court also noted that the Board has issued guidelines for recovery of outstanding dues in cases where first appeal has been disposed of till the Appellate Tribunal comes into operations.
Therefore, the Court directed that the ECL of the petitioner shall be unblocked to enable it to make pre-deposit of the said amount as the petitioner had ample credit in the ECL to cover the 20% pre-deposit requirement. On petitioner making pre-deposit of said amount and complying with other requirements of Circular dated 11.07.2024, no further coercive action shall be taken against petitioner.
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