Shivam Metallurgicals Private Limited Vs Assistant Commissioner (Chhattisgarh High Court)
The Chhattisgarh High Court, in the case of Shivam Metallurgicals Private Limited Vs Assistant Commissioner, dismissed a writ petition challenging the recovery of Goods and Services Tax (GST) dues from the assessee’s Electronic Credit Ledger (ECRL), ruling that the recovery action was valid under Section 79(1)(a) of the Central Goods and Services Tax (CGST) Act, 2017.
Background and Issue
The petitioner, Shivam Metallurgicals Private Limited, filed a writ petition under Articles 226/227 of the Constitution of India, challenging the action of the Assistant Commissioner, State Tax, who recovered ₹2,87,914/- from the company’s ECRL.
The core facts were:
1. An assessment order dated February 25, 2025, determined a GST demand of ₹10,32,672/- payable by the petitioner.
2. The petitioner was granted a period of 30 days from the date of the order to pay the outstanding amount.
3. The petitioner failed to pay the demand within the stipulated time.
4. Subsequently, the recovery of ₹2,87,914/- was made from the petitioner’s ECRL on June 19, 2025.
The petitioner contended that the recovery from the ECRL was without authority of law, in violation of fundamental rights, and a breach of natural justice, arguing that the ECRL is not a “money owing to such person” that the department can deduct from.
