Blocking of E-Credit Ledger Kept in Abeyance as Order was Passed by Competent Authority without Hearing Assessee
- News|Blog|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 4 November, 2024
Latest from Taxmann
Case Details: Sumetco Alloys (P.) Ltd. v. Deputy Commissioner - [2024] 167 taxmann.com 689 (Rajasthan)
Judiciary and Counsel Details
- Manindra Mohan Shrivastava, CJ & Ashutosh Kumar, J.
- Narendra Singhvi & Ms Shristhi Agarwal, Advs. for the Petitioner.
- Sandeep Taneja, AAG & Samaksh Dasot, CGPC for the Respondent.
Facts of the Case
In the present case, the petitioner challenged the order blocking an electronic credit ledger under Rule 86A of the CGST Rules. Although the notice was issued by the Joint Commissioner, the order was passed by the Deputy Commissioner without hearing the petitioner.
High Court Held
The High Court observed that Rule 86A requires the Commissioner or authorized officer not below the rank of the Assistant Commissioner to pass the order. Even though the rule does not expressly incorporate the principles of natural justice, the competent authority is obliged to hear the affected person.
Therefore, the High Court held that it was a prima facie violation of natural justice where the notice was given by an incompetent authority and the order was passed by the competent authority without a hearing. Accordingly, the action of blocking the electronic credit ledger was kept in abeyance pending the final hearing.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
