1 By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs:

“A. This Hon’ble Court may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ or order directing the respondents to forthwith release the block on electronic credit ledger imposed under Rule 86A of the GST Rules;

B. Without prejudice to the above and in the alternative, this Hon’ble Court may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ or order directing the respondents to forthwith withdraw negative block of ₹ 25,58,831/- inserted in the electronic credit ledger of the petitioner.

C. Pending notice, admission and final hearing of this petition, this Hon’ble Court may be pleased to direct the respondents to forthwith release the block on electronic credit ledger imposed under Rule 86A of the GST Rules;

D. Ex parte ad interim relief in terms of prayer C may kindly be granted;

E. Such further relief(s) as deemed fit in the facts and circumstances of the case may kindly be granted in the interest of justice for which act of kindness your petitioners shall forever pray.”

2 We have heard Mr. Uchit Sheth, the learned counsel appearing for the writ applicant and Mr. Utkarsh Sharma, the learned A.G.P. appearing for the State respondents.

3 The controversy involved in the present litigation is in a narrow compass. The balance available in the electronic credit ledger of the writ applicant as on the date of blocking was ₹ 10,68,613/-. The negative balance of ₹ 25,58,831/- has been inserted in the electronic credit ledger. Mr. Sheth would submit that even if some demand is proposed against the writ applicant, the writ applicant would participate in the adjudication proceedings and any amount ultimately held payable would be paid by the writ applicant. He further submitted that inserting of negative balance of ₹ 25,58,831/- in the electronic credit ledger is otherwise also illegal and without jurisdiction in view of the recent pronouncement of this Court in the case of Samay Alloys India Pvt. Ltd. vs. State of Gujarat [Special Civil Application No.18059 of 2021 decided on 3rd February 2021].

4 We dispose of this writ application directing the respondent No.3 to remove the negative balance of ₹ 25,58,831/- in the electronic credit ledger so as to enable the writ applicant to file his returns. The negative balance shall be removed within a period of one week from the date of receipt of the writ of this order.

5 It is not in dispute that till this date, no reasons have been assigned by the respondent No.3 for blocking the electronic credit ledger. As noted above, the balance available in the electronic credit ledger is of ₹ 10,68,613/- .

6 The respondent No.3 shall furnish reasons for invoking Rule 86A of the Rules, 2017 for the purpose of blocking of the electronic credit ledger so that the writ applicant can meet with the same. Till an appropriate reasoned order is not passed, the writ applicant shall retain the balance of ₹ 10,68,613/- in its electronic credit ledger.

7 With the aforesaid, this writ application stands disposed of.