M/s.Owaise Traders Vs The State of Telangana — Writ and Judicial Review | Telangana HC (2025)

M/s.Owaise Traders Vs The State of Telangana — Writ and Judicial Review | Telangana HC (2025)

What the court decided

AI extract

Outcome

Action of the respondents in unilaterally blocking the petitioner's Electronic Credit Ledger set aside; writ petition disposed of in terms of the order in W.P.No.10390 of 2024 and batch dated 26.06.2024; liberty reserved to respondents to proceed against the petitioner in accordance with law; no costs.

Issue for consideration

Whether the action of the 2nd respondent in blocking the input tax credit in the petitioner's electronic credit ledger on 11.02.2025 (Rs.68,41,688/-, with negative balance), without following the principles of natural justice, is illegal and liable to be set aside.

Court's answer

In view of the consensus arrived at between the parties, the action of the respondents in unilaterally blocking the Electronic Credit Ledger of the petitioner is disapproved and set aside.

Ratio / Principle

The Writ petition is disposed of in terms of the order in W.P.No.10390 of 2024 and batch dated 26.06.2024, with liberty reserved to the respondents to proceed against the petitioner in accordance with law, and with no costs.

Key takeaways

Miscellaneous petitions pending, if any, shall stand closed.obiter¶38

Detailed headnote1 paragraphs

Writ Petition No.6128 of 2025, High Court for the State of Telangana at Hyderabad (Division Bench: Sujoy Paul, Acting Chief Justice, author; Renuka Yara, J.), decided 10.03.2025. M/s.Owaise Traders challenged the 2nd respondent's (Assistant Commissioner (ST), Gandhinagar Circle) action of 11.02.2025 blocking input tax credit of Rs.68,41,688/- (with negative balance) in its electronic credit ledger as taken without following the principles of natural justice and contrary to the Court's order in M/s.Bhavani Oxides v. State of Telangana, W.P.Nos.10390 of 2024 and batch (dated 26.06.2024). On the consensus of learned counsel for both sides, the Court disapproved and set aside the unilateral blocking of the Electronic Credit Ledger and disposed of the writ petition in terms of the Bhavani Oxides order, reserving liberty to the respondents to proceed against the petitioner in accordance with law; no costs; pending miscellaneous petitions closed.

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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Originat Jurisdiction)

MONDAY, THE TENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE THE ACTING CHIEF JUSTICE SUJOY PAUL AND

THE HONOURABLE SMT JUSTICE RENUKA YARA

WRIT PETITION NO: 6128 OF 2025

Between:

M/s.Owaise Traders, 1-4-5491D, Bholakpur, Hyderabad, Telangana, rep. by^its Proprietor Sri Abdul Gaffar (GSTIN^- 364lLPA3229Q1ZY).

rl_

.....PETITIONER

AND

The State of Telangana, Rep. by the Principal Secretary, Revenue^(CT) Department, Secretariat, Hyderabad, Telangana.

The Assistant Commissioner (ST), Gandhinagar Circle, Secunderabad Division, Mayur Kushal Complex, beside Chermas, Abids, Hyderabad, Telangana.

.....RESPONDENTS

Petition Under Article 226 of the Constitution of lndia^{prayingthat in the} circumstances stated in the affidavit filed therewith, the High^Courtmaybe pleased to issue a Writ, or Order or Direction particularly one in the nature of Writ of Mandamus declaring the action of the 2nd respondent in blocking^{the useof} input tax credit of petitioner's electronic credit ledger dated^{11 .02.2025for an} amount of Rs.68,41 ,688/- as illegal and contrary to the^{judgment of this Hon'ble} Court in Mis.Bhavani Oxides and Others Vs. State of^{Telangana and Othersin} W.P.Nos.1039012024 and batch dated 26.06.2024 and is in^{violation of the} principles of natural^justice and unsustainable in law, onsequently set aside the impugned action of blocking Credit Ledger made by the^{2nd respondenton}

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11.02.2025 vide Rer'.No.813602250000155 for an amount^{of Rs.68,41} ,688/-^(with negative balance).

l.A.NO:1 OF 202s

Petition Under Section 151 CPC^praying that in the circumstances statedⁱⁿ the affidavit filed in support of the^petition, the High Court may be^pleased to direct the 2nd respondent to unblock the Electronic Credit Ledger of the^petitioner vide blocked on 11.02.2025 in Ref.No.BL3602250000155 for^ren amount of Rs.68,41,6881 (with negative balance) vide GSTIN - 368XSPP3000l/'1^{24 of the} petitioner immediate,ly.

Counsel for the Petitioner : SRI B.KRISHNA REDDY

Counsel for the Respondents : SRI SWAROOP OORILLA, LEARNED SPECIAL GP FOR TAXES

The Court made the following ORDER

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THE HON'BLE THE ACTING CHIEF JUSTICE^{SUJOY PAUL}

AND

THE HON'BLE SMT. JUSTICE RENUKA^YARA

WRIT PETITION No.6128 of^.2o25

ORDER:^(Per t!rc Hon'ble the Acting Chief^{Justice Sujog Poul)}

Sri B.Krishna Reddy, learned counsel^{appea-rs for the} petitioner and Sri Swaroop Oorilla, learned Special^Government Pleader for State Tax appears for the^respondents.

Learned counsel for the parties, during^{the course of} hearing, fairly submit that since the^{ElectronicCredit Ledger of} the petitioner is blocked without^{following the principles of natural} justice, the point is squarely covered by the order^{passedby this} Court in W.P.No.1O39O of^{2024 andbatch, decided on} 26.06.2024. The petition may be disposed of in terms of the said order.

In view of the consensus^{arrivedat, the action of the} respondents in unilaterally^{blocking the Electronic Credit Ledger} of the petitioner is^{disapprovedand set aside'}

2

Accordingl.v, the Writ petition is disposed of, by reserving liberty to the respondents to proceed against the petitioner, in accordance r.l-i th law. No costs.

MiscellarLeous petitions pending, if any, Sha1l stal,l closed.

SD/.L.LAKSHMI BABU //TRUE copy//^{AJs,-($itfrii'dEi#ffiH /}

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,^{) rE"rioru} orrrcen

To

The Principal Secretary, Revenue (CT) Department, Secretariat, State of Telangana at Hyderabad, Telangana

The Assistanl. Commissioner (ST), Gandhinagar Circle, Secunrlerabad

Division, Mayur Kushat Complex, beside Chermas, Abids, Hyderabad, Telangana.

Two CCs to SRI SWAROOP OOR|LLA, LEARNED SPEC|AL Gp FOR TAXES, High Court for the State of Telangana at Hyderabad. [()UT] 4. One CC to SFil B.KR|SHNA REDDY, Advocate tOiUCl 5. Two CD Copi,:s SA LS O ^- lf

HIGH COURT

DATE D : 1 010312025

ar:

ORDER

WP.No.6128 ot 2025

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DISPOSING OF THE W.P

WITHOUT COSTS. (L pw 3^></sup>