2019 (4) TMI 917 - HC - GST

Attachment of Bank Accounts - availability of remedy against the order of attachment by way of filing objection under sub-rule (5) of rule 159 of the Central Goods and Services Tax Rules, 2017 - Held that - The petitions are dismissed as not entertained in the light of the availability of the efficacious alternative remedy under sub-rule (5) of rule 159 of the Central Goods and Services Tax Rules, 2017. In terms of the communication dated 4.4.2019 of the Deputy Director, DGGI, AZU, the petitioners are required to file objections within seven days of attachment. Therefore, the petitioners were required to file the objections by 11th April, 2019.

Summary

Issues:
Challenge to orders of attachment of bank accounts under section 83 of the Central Goods and Services Tax Act, 2017. Availability of alternative remedy under sub-rule (5) of rule 159 of the Central Goods and Services Tax Rules, 2017. Initiation of proceedings under section 74 of the CGST Act.

Analysis:
The petitioners challenged the orders of attachment of their bank accounts under section 83 of the Central Goods and Services Tax Act, 2017. The Deputy Director, DGGI, AZU issued notices informing the petitioners of their right to file objections under sub-rule (5) of rule 159 of the CGST Rules within seven days of attachment. The petitioners argued that no proceedings under section 74 of the CGST Act had been initiated against them, questioning the authority of the attachment under section 83.

The court noted that the Deputy Director had provided a remedy for the petitioners to file objections under rule 159 of the CGST Rules. Due to the availability of an alternative efficacious remedy before the competent authority, the court declined to entertain the petitions under Article 226 of the Constitution of India. Consequently, the petitions were dismissed for not being entertained based on the presence of an alternative remedy under rule 159 of the CGST Rules.

Despite dismissing the petitions, the court allowed the petitioners an extension to file objections against the attachment. The petitioners were given until 18th April, 2019, to submit objections, considering their ongoing proceedings before the court. The competent authority was directed to consider all objections, including the legality of the attachment without proceedings under section 74, and make a decision by 30th April, 2019. The petitioners were also informed of their right to challenge any adverse order before the appropriate forum.

In conclusion, the court emphasized the importance of following the prescribed procedures and timelines for filing objections against the attachment of bank accounts under the CGST Act. The judgment highlighted the significance of availing alternative remedies provided by law before seeking relief through constitutional remedies like Article 226.