HC Decision: Blocking of Electronic Credit Ledger by Subordinate Officer Quashed

• The case was heard immediately upon request and with the consent of both parties.

• The petitioner's complaint is about respondent No. 3 blocking their Electronic Credit Ledger (ECL). A prior court order requested a review of this issue.

• The petitioner argues that the ECL blocking, as done by Mr. Ujval Shrirampant Deshmukh (State Tax Officer), was unauthorized because it should only be carried out by the Commissioner or an officer authorized by the Commissioner, not below the rank of Assistant Commissioner. Additionally, the prerequisites for the blocking order were not met.

• The court finds merit in the petitioner's points and decides to issue a notice for final disposal to the respondents.

• The court orders a stay on the effect and operation of the ECL blocking, and directs the immediate unblocking of the ECL.

• Rule 86A of the Central Goods and Services Tax Rules, 2017, allows the Commissioner or authorized officers, not below the rank of Assistant Commissioner, to block ECL. The delegation mentioned in a notification does not apply to this rule, and thus, the action of respondent No. 3 in blocking the ECL is quashed and set aside.

• The petition is allowed with no costs, and the rule is made absolute accordingly. Guru Storage Batteries Vs. State of Maharashtra