Sona Steels v. Assistant Commissioner of State Tax, Ward 63, Zone 6 & Anr.
GST – Blocking of electronic credit ledger
Case brief
What is this about?
Delhi High Court, W.P.(C) 9856/2024, decided 12.01.2026 by Justices Nitin Wasudeo Sambre and Ajay Digpaul. Petitioner Sona Steels challenged blocking of its GST credit ledger by the Assistant Commissioner of State Tax, Ward 63, Zone 6 under Reference No. BL0705240000664 dated 28.05.2024 (Rs. 2,95,926/-) and Reference No. BL0705240000677 dated 29.05.2024 (Rs. 55,40,964/-), and sought compensation through prayer clause (c) for a blockage lasting almost a year. Ledger since unblocked; show-cause notice proceedings pending. Court found the intentional/deliberate default question premature until SCN proceedings attain finality; petition disposed of as infructuous with compensation right reserved; merits expressly not appreciated. Keywords: credit ledger blocking, compensation, infructuous petition, show-cause notice, GST.
What did the court decide?
No substantive relief on merits; petition disposed of as infructuous with the petitioner's right qua the demand of compensation for unreasonably blocking the credit ledger expressly reserved.