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2019 (6) TMI 1105 - HC - GSTAttachment of bank account - Garnishee order - Demand of interest on ITC component - HELD THAT - Identical issue decided in the case of M/S. DONGSUNG AUTOMOTIVE PVT. LTD. VERSUS THE SUPERINTENDENT OF CENTRAL TAXES, KANCHEEPURAM, THE ASSISTANT COMMISSIONER OF CGST CENTRAL EXCISE, CHENNAI AND INDIAN OVERSEAS BANK 2019 (6) TMI 892 - MADRAS HIGH COURT . The balance available in the writ petitioner's account as of 12.06.2019 is ₹ 33,77,394/- - As the bank has not been arrayed as respondent, Registry shall communicate this order to the aforesaid bank at the aforesaid address and from and out of the aforesaid balance of little over ₹ 33,00,000/-, the said bank shall pay out an admitted sum of ₹ 9,15,121/- to the Assistant Commissioner of GST and Central Excise, Maraimalainagar Division (first respondent herein) forthwith. In all other aspects, communication dated 21.05.2019 bearing reference C.No.IV/16/30/2019-Tech-III from the first respondent to the aforesaid bank will stand set aside. This would mean that the writ petitioner can operate aforesaid bank account with the exception of aforementioned admitted sum of ₹ 9,15,121/-, which shall be paid by the Bank to the first respondent - On payment of aforesaid amount on or before 20.06.2019, the impugned communication dated 21.05.2019 from the second respondent to the Indian Overseas Bank will stand set aside. Petition disposed off.
Issues involved:
1. Consideration of objections and request regarding interest on ITC component. 2. Direction to the bank to pay an admitted sum to the Assistant Commissioner of GST. 3. Setting aside of communication from the first respondent to the bank. 4. Setting aside of communication from the second respondent to the bank. 5. Consideration of points raised in the writ petitioner's reply. 6. Availing alternate remedy of statutory appeal if decision is not in favor. Analysis: 1. The court noted that in a similar matter with identical facts, an order was passed directing the respondents to consider the writ petitioner's objections and request on whether interest is payable on the Input Tax Credit (ITC) component. As the issue was acknowledged to be identical, the order made in the previous case was to be read in conjunction with the current case. The writ petition was disposed of with specific directions based on the previous order. 2. The writ petitioner had provided a statement for their bank account showing a balance of ?33,77,394. The court directed the bank, which was not a respondent in the case, to pay an admitted sum of ?9,15,121 to the Assistant Commissioner of GST and Central Excise from the available bank balance. The court communicated this order to the bank for immediate action. 3. The court set aside a communication dated 21.05.2019 from the first respondent to the bank. This action allowed the writ petitioner to operate the bank account, except for the mentioned admitted sum, which was to be paid to the first respondent. 4. Another communication dated 21.05.2019 from the second respondent to the bank was also set aside by the court. This step was contingent upon the payment of the admitted amount by the bank to the first respondent on or before 20.06.2019. 5. Upon payment of the specified amount by the bank, the second respondent was directed to consider all points raised in the writ petitioner's reply and the annexed working sheet. The second respondent was required to pass an order in accordance with the law and communicate the decision to the writ petitioner within a week of payment. 6. If the decision by the second respondent favored the writ petitioner, the matter would be concluded. However, if the decision was not in favor, the writ petitioner was advised to pursue the statutory appeal process under Section 107 of the CGST Act. The writ was disposed of with the outlined directions, and no costs were awarded. The connected miscellaneous petitions were also closed as a result of the judgment.
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