2021 (3) TMI 338 - HC - GST

Seeking directions for lifting the provisional attachment - petitioner-company is not able to pay the salaries and other statutory dues concerning its employees as well as the amounts claimed by the respondents - HELD THAT - Petitioner says that Mr. Navneet Singh, director of the petitioner-company will join the proceedings as soon as he is served with the summons. It is also made clear that ₹ 2.00 crores which the petitioner-company, for the moment, has been permitted to collect from the 11 bank accounts will be only used to pay the salaries of the employees whose details have been given in the affidavit of director of the petitioner-company. List the matter on 05.04.2021.

Summary

Issues:
1. Provisional attachment of bank accounts by respondents
2. Petitioner's request for lifting the provisional attachment
3. Outstanding tax dues and payments made by the petitioner
4. Directions issued by the Court regarding bank accounts and payments
5. Deposit of original title deeds of properties
6. Consequences of non-compliance with Court's directions

Analysis:

Provisional Attachment of Bank Accounts:
The Court noted that due to the provisional attachment of 11 bank accounts of the petitioner-company by the respondents, the accounts became inoperable. The petitioner had objected to the attachment, which was rejected, leading them to seek interim directions from the Court to lift the attachment to pay salaries and statutory dues.

Outstanding Tax Dues and Payments:
It was highlighted that no assessment had been conducted by the respondents yet, and the petitioner had not self-assessed any tax dues. The total outstanding amount as per the respondents was ?20.22 crores, comprising principal and interest. The petitioner had paid ?7.70 crores prior to the order, reducing the principal liability to approximately ?17.00 crores.

Directions Issued by the Court:
The Court directed the lifting of the provisional attachment on the 11 bank accounts and specified that the petitioner retain ?2.00 crores in the accounts and deposit the excess amount with the respondents. The petitioner was instructed to deposit ?5.00 crores by a specified date and the original title deeds of properties within two days.

Consequences of Non-Compliance:
The Court warned that in case of non-compliance with the directions, the respondents could attach and sell the immovable properties. Additionally, the respondents were granted the right to seek further orders concerning the petitioner-company and its directors.

Miscellaneous:
The Court ordered that the ?2.00 crores collected from the bank accounts should only be used to pay employee salaries. Both parties were directed to act on a digitally signed copy of the order, and the matter was listed for further hearing on a specified date.

This detailed analysis covers the key issues addressed in the judgment, the Court's observations, and the specific directions issued to resolve the matter effectively.