2019 (9) TMI 1095 - HC - VAT and Sales Tax

De-freezeing/de-sealing of bank account - finalization of assessment proceedings - Section 34 of the Haryana Value Added Tax Act, 2003 - HELD THAT - it is submitted that the same authority has issued directions for the release of the bank account(s) of the petitioner It is agreed by the counsel for petitioner that nothing more survives for adjudication in the present writ petition and the same has become infructuous. Appeal dismissed as infructuous.

Summary

Issues:
1. Assessment proceedings under the Haryana Value Added Tax Act, 2003 for the Assessment Years 2012-13 & 2013-14.
2. Additional demand raised on the ground of incorrect tax rate applied to sales of Paneer.
3. Attachment of bank accounts towards recovery of the additional tax demand.
4. Appeal filed challenging the orders and attachment before the Haryana Tax Tribunal.
5. Writ petition seeking to de-freeze bank accounts and interim stay on attachment.

Analysis:
1. The petitioner, a proprietorship concern engaged in retail dairy product business, purchased products from a supplier and underwent assessment proceedings for the years 2012-13 & 2013-14. The Revisional Authority raised additional demand due to incorrect tax rate applied on Paneer sales, leading to attachment of bank accounts for recovery.

2. Challenging the orders and attachment, the petitioner filed an appeal before the Haryana Tax Tribunal. Subsequently, a writ petition was filed seeking a mandamus to de-freeze the bank accounts sealed for recovery, with an interim stay on the attachment memo dated 11.04.2019.

3. During the hearing, the State Counsel presented a memo directing the release of the bank accounts, indicating that the attachment had been lifted due to the submission of surety bonds by the dealer. Consequently, the counsel for the petitioner agreed that the matter had become infructuous, leading to the disposal of the writ petition.

4. The judgment concludes that as the bank accounts were released following the submission of surety bonds, there was no further need for adjudication in the writ petition, rendering it infructuous. Thus, the matter was disposed of as such, with no further action required on the petition.

By considering the events leading to the attachment of bank accounts, the subsequent release upon submission of surety bonds, and the acknowledgment of the matter becoming infructuous, the judgment provides a comprehensive overview of the legal proceedings and resolutions in the case.