V V Steels v. The Assistant Commissioner Of Gst And Central Excise

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 08-10-2025

CORAM

THE HONOURABLE MR JUSTICE C. SARAVANAN AND WMP NO. 34743 OF 2025

1. V V Steels Represented by Proprietor Mr.Shanmugam Selvaraj SF No.452 2, Shakthi Nagar Colony, North Zone, Ganapathy, Coimbatore 641006 Petitioner(s) Vs

1. The Assistant Commissioner Of Gst And Central Excise Coimbatore Ii Division, 3rd Floor Aadithya Towers, 1667 Trichy Road, Ramanathapuram, Coimbatore 641 045.

2.The Joint Commissioner St Intelligence Commercial Taxes Building Reserve Line Road, Palayamkottai. Tirunelveli 627002 Respondent(s)

PRAYER directing the first Respondent to forthwith unblock the Petitioners Electronic Credit Ledger, which was blocked under Rule 86A(1) of the Central Goods and Services Tax Rules, 2017 by the first Respondent vide Reference No.BL3312240000519 dated 12.12.2024, in respect of GSTIN No. 33FXAPS6142D1ZN, and pass For Respondent(s):

Mr. Sai Srujan Tayi Senior Panel Counsel Takes Notice For R1.

Ms. Amirta Poonkodi Dinakaran Govt Advocate Takes Notice For R2.

M/s.Sai Srujan Tayi, Sr Sc, Pooja Jain, Jr Sc For R1 Memo Dt.22/09/2025

ORDER

This Writ Petition is being disposed of after hearing the learned counsel for the Petitioner and the learned counsels appearing for the respective Respondents.

2. The petitioner is assessed with the first respondent / the Assistant Commissioner of GST and Central Excise. It appears that the petitioner had transactions with one PSN Traders within the jurisdiction of the second respondent / State Authority.

3. It appears that proceedings had been initiated against the PSN Traders on the ground that the PSN Traders was carrying-on business without physical presence and therefore, the registration of the said supplier viz., PSR Traders was liable to be cancelled. Based on the aforesaid input, the first respondent has blocked the Input Tax Credit of the petitioner on 12.12.2024.

4. The learned counsel for the petitioner would submit that the Office of the first respondent has itself addressed a communication to the Office of the second respondent on 28.05.2025, wherein they have stated as follows:

5. The learned counsel for the petitioner would submit that the first respondent is bound to exercise powers under Section 86 A (2) of the respective GST Rules. In this connection, the learned counsel for the petitioner has also

placed on record a guidelines of the Central Board of Indirect Taxes and Customs, GST Policy Wing dated 02.11.2021, wherein it has been clarified as under:

6. The learned counsel for the first respondent would submit that the petitioner's request for unblocking of the Input Tax Credit will be considered in the light of the subsequent developments.

7. It is submitted that the petitioner has rushed to the Court immediately after giving a representation and therefore, the first respondent did not get time to pass any orders under Rule 86 A of the respective GST Rules.

8. The learned counsels for both the respondents would submit that investigations are still incomplete as far as the supplies of the PSN Traders, from whom the petitioner had allegedly purchased goods and had availed Input Tax Credit and therefore, pending period of one year, the credit need not be unblocked in terms of the sub clause 3 (2) to 8 A of the respective GST enactments.

9. Having considered the submissions made by the learned counsel for the petitioner and the learned counsels appearing for the respective respondents and taking note of the reply of the Superintendent attached to the Office of the first respondent to the Office of the second respondent, I direct the first respondent to pass appropriate orders after getting necessary inputs from the Office of the second respondent as expeditiously as possible, preferably, within a period of

four weeks from the date of receipt of a copy of this order.

10. Needless to state, before passing any such order, the petitioner be heard.

11. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petition is closed. 08-10-2025 Index:Yes/No Speaking/Non-speaking order Internet:Yes ab

To 1.The Assistant Commissioner Of Gst And Central Excise Coimbatore Ii Division, 3rd Floor Aadithya Towers, 1667 Trichy Road, Ramanathapuram, Coimbatore 641 045.

2.The Joint Commissioner St Intelligence Commercial Taxes Building Reserve Line Road, Palayamkottai. Tirunelveli 627002

C.SARAVANAN J.

ab AND WMP NO. 34743 OF 2025 08-10-2025