2020 (7) TMI 634 - HC - GST

Freezing of petitioner's bank accounts - Section 159 (5) of the Central GST Rules, 2017 - HELD THAT - The present petition is disposed of with the directions to the authority concerned to positively decide the same on or before 27.07.2020 by passing a speaking order.

Summary

Issues:
1. Quashing of Provisional Attachment Order under Section 83 of CGST Act, 2017.
2. Freezing of bank accounts of the petitioner-Company.
3. Objections filed under Rule 159(5) of Central GST Rules, 2017.
4. Directions for deciding objections within a specified timeframe.
5. Permission to operate a specific bank account.

Analysis:

1. The petitioner-Company, engaged in manufacturing various products, sought quashing of the Provisional Attachment Order dated 10.07.2020 under Section 83 of the CGST Act, 2017, freezing all its bank accounts post a search in the premises. The petitioner emphasized the need to continue business operations while ensuring revenue security.

2. The Court directed the authority to decide the objections filed by the petitioner under Rule 159(5) of the Central GST Rules, 2017 within a specific timeframe. Notably, the counsel for the respondents informed that objections were filed on 18.07.2020, with a personal hearing scheduled for 22.07.2020. The Court granted an extension until 27.07.2020 for deciding the objections, considering the reasonableness of the request.

3. The judgment referred to previous decisions such as "Valerius Industries vs. Union of India" and "Bindal Smelting P. Ltd. vs. Addl. Director General, GST Intelligence" to guide the concerned authority in making a well-reasoned decision. The Court emphasized the importance of passing a speaking order while considering the judgments cited.

4. Notably, a specific Cash Credit Account with Canara Bank, Sector-17 Branch, Chandigarh, was permitted to be operated despite the freeze imposed by the Provisional Attachment Order. This decision aimed to balance the petitioner's business needs with revenue security concerns.

5. The judgment concluded by disposing of the petition and directing the concerned authority to make a decision on the objections by 27.07.2020, in line with the specified timeframe and legal precedents cited during the proceedings.