2018 (9) TMI 683 - HC - GST

Attachment of Bank Account - recovery of tax and penalty in the assessment orders for the years from 2015-16 to 2017- 18 - It was found that there was no assessment order - Held that - This Court considered the first ground and directed the learned Government Advocate to verify and report as to whether any assessment orders have been passed in respect of the relevant years. The learned Government Advocate, on instructions from the officer, who is present in court, has informed that the assessment orders have not been passed in respect of all the three relevant assessment years. Then, there cannot be a demand notice nor there can be any attachment of the petitioner s bank account. The impugned notice is set aside - petition allowed.

Summary

Issues:
Challenge to show cause notice and bank account attachment for tax and penalty recovery in assessment orders from 2015-16 to 2017-18.

Analysis:
The petitioner contested a show cause notice dated 16.1.2018 and the subsequent bank account attachment for tax and penalty recovery related to assessment orders spanning from 2015-16 to 2017-18. The primary argument put forth was the absence of communicated assessment orders for the relevant years, with the last assessment being for 2014-15. Additional contentions were raised concerning the validity of the notice under the Puducherry Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017. The court, focusing on the lack of assessment orders for the relevant years, directed the Government Advocate to confirm if such orders existed. Upon verification, it was revealed that no assessment orders were issued for the specified assessment years, rendering the demand notice and bank account attachment invalid.

Consequently, the court allowed the writ petition, setting aside the impugned notice and Form U notice directed to the petitioner's banker. The respondents were instructed to return any collected cheques from the petitioner within three days of receiving the order. Following the return of cheques, the respondents were mandated to issue pre-revision notices for all three assessment years, provide an opportunity for objections submission, conduct a personal hearing, and finalize assessments adhering to legal procedures. No costs were imposed, and the connected Writ Miscellaneous Petition (WMP) was closed, concluding the case.