SHRI SAI RAM ENTERPRIESES vs PR. ADG, DGGI, GURUGRAM & ANR.

Judgment text excerpt

$~77 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 28th April, 2025 + W.P.(C) 5438/2025 and CM APPL No. 24762/2025 & 24763/2025 SHRI SAI RAM ENTERPRIESES .....Petitioner Through: Mr. Jitin Singhal, Mr. Pravesh Bahuguna and Ms. Megha Advocates. versus PR. ADG, DGGI, GURUGRAM & ANR. .....Respondents Through: Mr. Harpreet Singh, SSC with Ms. Suhani Mathur and Mr. Jai Ahuja, Advocates. CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA Prathiba M. Singh, J. (Oral) 1. This hearing has been done through hybrid mode. CM APPL.24763/2025 (Exemption) 2. Exemption allowed, subject to all just exceptions. 3. The application is disposed of. W.P.(C) 5438/2025 and CM APPL No. 24762/2025 4. The present petition has been filed by the Petitioner– Shri Sai Ram Enterprises challenging the blocking of the Input Tax Credit (hereinafter, ‘ITC’) of Rs. 3,91,23,722/- by the Deputy Director, Directorate General of GST Intelligence, Gurugram on 15th January,2024. 5. The submission on behalf of the Petitioner is that the blocking of the ITC took place for the period 1st January, 2024 to 31st November, 2024 but even at present, i.e., as on April, 2025, the same has not been unblocked. 6. Learned Counsel for the Petitioner relies upon Rule 86A of the Central W.P.(C) 5438/2025 Page 1 of 4 Signature Not Verified Signed By:DHIRENDER KUMAR Signing Date:30.04.2025 18:21:15 Goods and Services Tax Rules, 2017 which lays down the conditions of use of amount available in electronic credit ledger. 7. Mr. Harpreet Singh, learned Counsel for Respondents submits that the blocking may be due to the allegation of the Petitioner being a non-existing firm. However, he concedes to the fact that there can be no doubt that the blocking is for a period of one year. 8. The relevant Rule 86(A)(3)