The Allahabad High Court has disposed of the GST petition after clarification on Rs. 46 Lakh credit block and not debited.

The bench of Chief Justice Arun Bhansali and Justice Kshitij Shailendra has observed that the plea raised by the petitioner, essentially pertains to the debit entry having been made by the respondents, qua a sum of Rs. 46,01,645, which aspect has been clarified and indicated as having been blocked only, the apprehension as expressed by the petitioner and the foundation for filing the petition is taken care of.

The petitioner/assessee has challenged the action of the respondents in passing the order under Section 86A of the Central Goods and Services Tax Act, 2017.

The petitioner contended that though the order passed under Section 86A of the Act, indicated blocking in the electronic credit register to the tune of Rs. 4,53,79,497, the GST department debited the amount to the tune of Rs. 46,01,645 in the electronic credit register of the petitioner and now an amount to the tune of Rs. 4,07,77,852 is being shown, as negative balance.

Though the plea in the petition pertains to the action of the respondents in negative blocking in the electronic credit register being contrary to the powers under Rule 86A of the Central Goods and Services Tax Rules, 2017 a submission was made on 10.03.2025, by which the department was granted time to indicate as to whether the amount of Rs. 46,01,645, which was lying in the credit of the petitioner on the date of order, has been debited and/or the same has only been blocked or lien has been credited to which, instructions have been produced, inter alia, indicating that the amount of Rs. 46,01,645 has been blocked and not debited as claimed by the petitioner.

The court disposed of the writ petition. 

Case Details

Case Title: Dutt Metal Craft versus State of U.P. and another

Case No.: Writ Tax No. – 628 Of 2025

Date: 8.5.2025

Counsel For Petitioner: Abhinav Gaur

Counsel For Respondent: C.S.C., Dhananjay Awasthi

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