2022 (6) TMI 464 - HC - GST

Freezing of Bank Accounts of petitioner - Rule 86A(3) of the CGST Rule 2017 - HELD THAT - Issue Notice. List the matter on 31.08.2022.

Summary

Issues Involved:
Petition to set aside freezing of bank accounts and electronic credit ledger, mandamus to de-freeze bank accounts, jurisdictional Commissionerate as a party.

Analysis:

1. Freezing of Bank Accounts:
The petitioner sought writs to set aside the freezing of three bank accounts maintained at different banks. The High Court, after hearing both parties, allowed the reliefs sought in prayer clauses (a) to (f) straight away as per Mr. Singla's submission. Therefore, the orders to set aside the freezing of these bank accounts were granted by the Court.

2. Electronic Credit Ledger Blockage:
The remaining issue pertained to the blocking of the Electronic Credit Ledger of the petitioner. Mr. Singla contended that the respondents currently involved in the case were not concerned with the reliefs sought in prayer clauses (g) and (h). The Court acknowledged this position and directed the petitioner's counsel to take steps to include the jurisdictional Commissionerate as a party. Accordingly, the Court granted leave for this purpose, indicating that further proceedings related to the Electronic Credit Ledger blockage would be addressed after the necessary parties were included.

3. Future Proceedings:
The matter was listed for the next hearing on 31.08.2022. Additionally, the Court instructed all parties, including the banks where the accounts were maintained, namely Axis Bank, Bank of Baroda, and ICICI Bank, to act based on the digitally signed copy of the order. This directive ensured compliance with the Court's decision and facilitated necessary actions by the concerned parties.

In conclusion, the High Court's judgment addressed the petitioner's grievances regarding the freezing of bank accounts and the blockage of the Electronic Credit Ledger. While granting immediate relief for the bank accounts, the Court deferred further action on the Electronic Credit Ledger issue pending the inclusion of the jurisdictional Commissionerate as a party in the proceedings. The directive for digital compliance by all parties underscored the importance of adhering to the Court's orders for effective resolution of the matter.