BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 10.02.2026 CORAM THE HONOURABLE Mr. JUSTICE KRISHNAN RAMASAMY M/s.V.V.Iron Steel Company Private Limited, Rep. by its Director, S.Chandresan, Visco Industrial Estate, Thanoothu Village, Aniabaranallor P.O, Srivaikundam Taluk, Tuticorin District - 628851. ...Petitioner vs.

The Assistant Commissioner, Central GST and Central Excise, Tirunelveli Division. ...Respondent Prayer: Writ Petition filed under Article 226 of Constitution of India, praying to issue a Writ of Mandamus directing the respondent to unblock the Input Tax Credit of Rs.4,10,94,906/- under CGST and SGST in the petitioner Electronic Credit Ledger and permit the petitioner to utilize such credit for discharge of its GST liabilities.

For Petitioner : Mr.S.Silambannan, senior counsel for Mr.T.Bashyam For Respondent : Mr.R.Gowrishankar

ORDER

This Writ Petition has been filed to direct the respondent to unblock the Input Tax Credit of Rs.4,10,94,906/- under CGST and SGST in the petitioner's Electronic Credit Ledger and permit the petitioner to utilize such credit for discharge of their GST liabilities.

2. The learned senior counsel appearing for the petitioner would submit that the petitioner Company has been carrying on business genuinely. While so, all of a sudden, the petitioner's electronic credit ledger was blocked on 26.11.2025, 28.11.2025 and 19.12.2025 under the pretext that the petitioner Company is having transactions with the non-existing dealers. The petitioner made a representation to the respondent on 06.01.2026 requesting to unblock their electronic credit ledger and enable them to utilize the ITC available in their electronic credit ledger to discharge their GST liabilities. However, the representation is yet to be considered. The learned senior counsel, in support of his contention, referred to the Division Bench Judgment of this Court dated 16.09.2021 in W.A.No.2341 of 2021 and prayed for appropriate orders in this matter.

3. The learned counsel appearing for the respondent has filed a status report to the effect that consequent to the order passed by this Court on

02.02.2026, the petitioner has sent the relevant documents by way of registered post to the respondent on 09.02.2026 and the respondent is in the process of verifying those documents. As the subject matter is pertaining to fake invoices, the respondent is awaiting report from the investigation agencies, who carried out investigation at the suppliers' end. According to the learned counsel, after receipt of the report, show cause notice will be issued to the petitioner, an opportunity of hearing will be provided and thereafter, appropriate orders will be passed. As far as the representation of the petitioner dated 06.01.2026 is concerned, he would submit that the same will be disposed within a period of two weeks.

4. I have given due consideration to the submissions made on either sides.

5. According to the petitioner Company, their electronic credit ledger has been blocked and hence, they are not in a position to utilize the ITC available in their credit to the extent of Rs.4,10,94,906/- and to that extent they have been suffering with financial burden. According to the respondent, the petitioner Company dealt with many number of non-existing dealers and was also involved in fake invoices case and in this regard, investigation is going on. Under such circumstances, this Court is of the view that with regard to the above issue, the respondent can issue show cause notice, after receipt of the investigation report and take a decision is accordance with law.

6. As far as blocking of the petitioner Company's electronic credit ledger is concerned, the respondent need not issue any notice, but has to record the reason for blocking the electronic credit ledger of the petitioner. In the present case, subsequent to the blocking of the electronic credit ledger, the petitioner has made a representation on 06.01.2026 to substantiate their case. However, the s