BHAVANI OXIDES Vs. STATE OF TELANGANA

JUDGEMENT

(1.) Regard being had to the similitude of the questions involved on the joint request of the parties, the matters were analogously heard and decided by this common order.

(2.) The facts are taken from W.P.No.10390 of 2024. The petitioner is a proprietorship firm engaged in the manufacture and supply of zinc oxide and duly registered with Goods and Service Tax (GST) authorities of Telangana State. The petitioner claims itself as bona fide purchaser of inputs from various suppliers and has been receiving proper tax invoices, e-way bills and maintained weighment slips under the provisions of Central Goods and Service Tax (CGST) Act, 2017 (Act) and Telangana State Goods and Service Tax (SGST) Act, 2017.

(3.) It is submitted that on 14/3/2024, the State Tax Officer in purported exercise of power under Rule 86A i.e., Conditions of use of amount available in electronic credit ledger of the CGST Rules, 2017 (Rules), blocked the credit ledger of the petitioner by mentioning 'Registration of supplier has been cancelled'. The ledger is blocked without issuing any show cause notice. No detailed reasons and necessary facts were disclosed, which became foundation for such blocking by the respondent. Because of the blocking, the electronic credit ledger reflects the closing balance as zero. This action of blocking is subject matter of challenge in these petitions filed under Article 226 of the Constitution.