Calcutta High Court rejects GST department's credit ledger order

Calcutta High Court rejects GST department's credit ledger order

As per the West Bengal tax rules, the validity had elapsed

The Calcutta High Court has directed the Goods and Services Tax (GST) department to cancel the blockage of the credit ledger, as its order had expired after one year.

The petitioner, Jai Venkatesh had challenged the impugned action of the respondents blocking his credit ledger after the November 2020 order. He contended that in view of the West Bengal GST Rules, 2017, it had lost its value since the maximum period of validity of such an order was one year from the date of imposing such a restriction.

Justice Mohammad Nizamuddin observed that the State respondents could not deny and dispute the submission of the petitioner. He ruled, "Considering the submission of the parties, this writ petition is disposed of by holding that the aforesaid impugned order dated 24 November 2020 has ceased to have any effect and has no force in the eye of the law."

"It is clarified that this order is only confining to the aforesaid impugned order and will have no impact on any other relevant proceedings. The respondent concerned shall pass the effective order for unblocking of the electronic credit ledger in question within seven days from the date," the court added.