JUDGMENT :

Heard learned counsel for the parties.

2. Writ petitioner approached this Court with multiple reliefs:-

(1) a. For issuance of an appropriate writ, order or directions, directing upon the respondents to show cause as to how and under what circumstances, order has been passed by the Respondent Department in Form GST DRC-07 (Annexure-12), levying tax, interest and penalty to the tune of Rs.1,09,10,755.38/-, on the purported allegation of the petitioner having claimed excess ITC, without affording any opportunity of hearing to the petitioner company. And without looking into the records/online entries from the portal on the petitioner.

b. Consequent upon showing cause if nay, and on being satisfied that the department could not have passed the summary order dated 18.09.2019 u/r.142, summarily, without following the modalities prescribed under the Act, and without affording any opportunity of hearing to the petitioner, the same be quashed and set aside, being illegal, arbitrary and bad in law.

c. For issuance of an appropriate writ, order or directions, directing upon the respondents to show cause as to how and under what circumstances, the amount of Input Tax Credit lying in the credit of electronic ledger account, has been blocked by the department.

d. Consequent upon showing cause, if any, and being satisfied that the department has acted illegally and arbitrarily in blocking the Input Tax Credit lying in the credit of electronic ledger.

3. As the pleadings of the writ petition show petitioner-company duly registered under the Goods and Services Tax Act, 2017 was subjected to inspection on 1st December 2018 by the Assistant Commissioner of Commercial Taxes and asked to furnish a set of documents before the Deputy Commissioner of Sales Tax on 4th December, 2018 under Section 71 of the JGST Act, 2017. Copy of the inspection report is Annexure-3. According to the petitioner relevant documents such as purchase register with copy of invoices and vender wise detail of GST credit for the period 1st July, 2017 to 31st October, 2018 and stock register for financial year 2017-18, 2018-19 were furnished. However, according to the petitioner as per the agreement with the ONGC and IOCL the project executed by the petitioner was at this stage of installation/erection/commission and as on that date 19th July, 2019 no revenue had been generated. However, petitioner received a summary of show cause notice under GST DRC-01/GST DRC-02 alleging availment of excess Input Tax Credit for the period July, 2017 to September, 2018 proposing to impose tax, interest and penalty to the tune of Rs. 1.09 crores. Petitioner’s return were also subjected to scrutiny and GST ASMT-10 was issued in terms of Rule 99 (1) for the period of April, 2018 to March, 2019 which overlaps to the period of DRC-01/ DRC-02 alleging mismatch of GSTR-3B and GSTR-2A. Subsequently petitioner was surprised to receive a summary of the order under GST DRC-07 issued under Rule 142(5) for the period July, 2017 to September 2018. According to the petitioner it filed an application for rectification on 28th September, 2019 under Section 161 of the Act of 2017 and also submitted reconciliation statements for the period of 1st July 2017 to 30th September 2018 in terms of which an amount of Rs. 4.06 lacs was standing towards ITC in favour of the petitioner. According to the petitioner as per the reconciliation statements there is no difference or mismatch or excess availment of ITC. The grievance of the petitioner is that no order has been passed on the rectification application till date while an amount of Rs. 74.20 lacs of ITC remains blocked in its Electronic Credit Ledger since 16th February 2020 till date much beyond the one year period prescribed under rule 86 A of the JGST Act, 2017.

4. Petitioner has inter-alia taken up number of grounds and urged that the writ petition is maintainable on account of violation of principles of natural justice and failure to follow the procedure pre