2022 (7) TMI 704 - HC - GST

Lifting of provisional attachment of Bank Accounts - some of the bank accounts have 0 credit balance - HELD THAT - A perusal of the details would show, that some of the bank accounts have 0 credit balance. The cumulative credit balance available, as per the details set out in the said table, is Rs.1,67,550.12/- - it is informed by Mr Harpreet Singh, who appears on behalf of the respondent/revenue, that there are 13 bank accounts, against which provisional attachment orders have been issued. These bank accounts, we are told, concern entities and persons, which are not being investigated. This position is affirmed by Mr Singh. The respondent/revenue will lift the provisional attachment order issued qua 38 bank accounts - concerned banks will remit the amounts available in the accounts of the petitioners to the respondent/revenue, upon necessary intimation being received by them - petitioners will be afforded opportunity to contest the show cause notice, if served on the petitioners. Petition disposed off.

Summary

Issues:
1. Condonation of delay in filing counter-affidavit.
2. Lifting of provisional attachment on 38 bank accounts.
3. Remittance of cumulative credit balance to revenue.
4. Disposal of writ petitions with agreed directions.

Analysis:
1. The judgment begins with an application filed by the respondent/revenue seeking condonation of a 20-day delay in filing a counter-affidavit. The delay is condoned based on the reasons provided in the application, and the counter-affidavit is formally accepted.

2. Moving on to the main issue, the petitioners, represented by senior counsel, seek the lifting of the provisional attachment on 38 bank accounts under investigation. These accounts belong to three entities, with some showing a credit balance of Rs.1,67,550.12. Additionally, 13 other bank accounts not related to the investigation are also under provisional attachment.

3. After discussions, it is agreed that the provisional attachments on all 38 bank accounts will be lifted if the cumulative credit balance is remitted to the revenue. The revenue will then invest this amount in an interest-bearing fixed deposit pending adjudication, with quarterly bank statements to be filed with the court for monitoring purposes.

4. The judgment concludes with agreed directions for the disposal of the writ petitions, including lifting provisional attachments on all bank accounts, remittance of funds, serving a show cause notice, allowing the petitioners to contest, and ensuring a speaking order is passed by the revenue. Quarterly bank statements for the investigated accounts are also required to be filed by the petitioners.

5. The judgment ends by stating that there will be no order as to costs, and the writ petitions are disposed of as per the agreed terms, with the pending application being closed accordingly.