$ 1 * IN HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6799/2020 GOYAL IRON AND STEEL TRADERS ...... Petitioner Through: Ms.Vibhooti Malhotra, Advocate. versus ASSISTANT COMMISSIONER PALAM DIVISION CGST DELHI SOUTH & ORS. ..... Respondents Through: Mr.Harpreet Singh, Sr.Standing counsel for R-1 to 3. % Date of Decision: 23rd September, 2020 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE SANJEEV NARULA JUDGMENT MANMOHAN, J: (Oral) C.M.No.23547/2020 Exemption allowed, subject to all just exceptions. Accordingly, application stands disposed of. W.P.(C) No.6799/2020 & C.M.No.23548/2020 1. petition has been listed before this Bench by Registry in view of urgency expressed therein. same has been heard by way of video conferencing. 2. Present writ petition has been filed challenging impugned Input Tax Credit block dated 25th January, 2020 in petitioner s electronic credit ledger and impugned notice dated 28th January, 2020 issued by respondents nos.1 and 2 citing mismatch in Input Tax Credit claimed in GSTR-3B and that appearing in GSTR-2A during period April, 2018 - W.P.(C) 6799/2020 Page 1 of 3 March, 2019 as well as direction to respondents nos.1, 2 & 3 to open GST portal so that respondent no.4 and petitioner can make necessary modifications and remove mismatch on account of respondent no.4 s failure to mention petitioner s GST registration number. In alternative, petitioner seeks directions to respondents nos.1 and 2 to pass speaking order on its representation dated 20th August, 2020 or direction to respondents nos.1 and 2 to provide reasons to believe recorded in petitioner s case prior to credit block and to provide opportunity to petitioner to file objections thereon and seek their disposal by way of speaking order. 3. Learned counsel for petitioner states that said Input Tax Credit was claimed on account of purchases made from Indian Oil Corporation- respondent no.4 against duly issued tax invoices and tax levied on sale had been duly deposited with Government treasury. 4. She submits that impugned Input Tax Credit block dated 25th January, 2020 had been undertaken without issuance of any prior notice or reasoned order. It is petitioner s case that conditions mentioned in Rule 86A of CGST Rules, 2017 are not satisfied in present case. 5. She contends that from impugned notice dated 28th January, 2020 issued by respondents nos.1 and 2, it is apparent that alleged mismatch of input tax credit arises on account of respondent no.4 s wrongful classification of sale to petitioner as sale to unregistered entity. She points out that invoices issued by respondent no.4 contain petitioner s GST registration number. She states that, in fact, respondent no.4 has admitted its mistake to respondents. W.P.(C) 6799/2020 Page 2 of 3 6. She further states that approach of respondents nos.1 and 2 in issuing impugned credit block and impugned notice is contrary to scheme laid down in Rule 71 of CGST Rules, 2017 inasmuch as there is no window/time left for respondent no.4 to rectify mistake. 7. Issue notice. 8. Mr.Harpreet Singh, learned senior standing counsel accepts notice on behalf of respondents. He states that he has no objection if present writ petition is directed to be treated as representation to respondent no.1 and same is directed to be disposed of by way of reasoned order. 9. In view of aforesaid, present writ petition is directed to be treated as representation to respondent no.1, who is directed to decide same by way of reasoned order within four weeks, in accordance with law, after giving opportunity of hearing to petitioner and/or its authorized representative. 10. Till said representation is decided by respondent no.1, parties are directed to maintain status quo with regard to impugned notice dated 28th January, 2020. 11. Accordingly, present writ petition and application stand disposed of. 12. order be uploaded on website forthwith. Copy of order be also forwarded to learned counsel through e-mail. MANMOHAN, J SANJEEV NARULA, J SEPTEMBER 23, 2020 KA W.P.(C) 6799/2020 Page 3 of 3 Goyal Iron and Steel Traders v. Assistant Commissioner Palam Division CGST Delhi South & Or