2022 (7) TMI 872 - HC - VAT and Sales Tax

Maintainability of appeal - requirement of mandatory pre-deposit - Attachment of Overdraft Bank Accounts - garnishee proceedings - HELD THAT - The defect, which was stated to have occurred while filing the appeal online appears to have been rectified and the appellate authority is in seisin over the matter. However, the appellate authority cannot entertain the appeal without hearing and without the appellant complying with the mandatory pre-deposit condition as contemplated under the provisions of the W.B.VAT Act. That apart, no useful purpose would be served by attaching an overdraft account by way of garnishee proceedings.Therefore, in our view, such attachment needs to be lifted however, subject to the condition that the appellant pays the mandatory pre-deposit payable in terms of the relevant provisions of the W.B.VAT Act. The appellant is directed to comply with the mandatory predeposit condition within a period of two weeks from the date of receipt of the server copy of this judgment and order - Petition disposed off.

Summary

Issues:
Appeal against order of attachment of overdraft account due to tax assessment - Incorrect filing of appeal online - Lack of interim order - Compliance with mandatory pre-deposit condition - Direction to lift attachment upon compliance - Submission of bank account details - Hearing of appeal by appellate authority - Withdrawal of application before Tribunal.

Analysis:
1. Appeal against Attachment of Overdraft Account: The appellant challenged the attachment of their overdraft account following a tax assessment order. The appellant contended that they had filed an appeal online under the wrong authority, causing prejudice. The learned Government Advocate argued for the finality of the order, requiring the appellant to pay the assessed amount. The Court noted the rectification of the appeal filing error and the appellate authority's acceptance of the appeal, subject to compliance with pre-deposit conditions under the W.B.VAT Act.

2. Grant of Interim Order: The Court observed that no specific prayer for an interim order was made by the appellant before the Single Bench. Despite this, considering the narrow scope of the case, the Court decided to dispose of the intra-Court appeal and the writ petition with the consent of both parties' advocates, emphasizing the importance of compliance with legal procedures and conditions.

3. Compliance with Conditions and Directions: The Court issued specific directions for the appellant to comply with the mandatory pre-deposit condition within two weeks. Upon compliance, the authority was directed to lift the attachment of the overdraft account. Additionally, the appellant was instructed to provide full bank account details to the Assessing Officer and to attend the appeal hearing before the Joint Commissioner, State Tax, West Bengal, Kolkata South Circle without seeking adjournment.

4. Withdrawal of Application before Tribunal: The appellant had also filed an application before the Tribunal, which the appellant's advocate agreed to withdraw. With these directions and conditions, the Court disposed of the appeal, connected application, and writ petition, emphasizing no costs to be awarded and the provision of an urgent certified copy of the order upon completion of legal formalities.

This judgment highlights the importance of procedural compliance, rectification of errors, and adherence to statutory requirements in tax matters, ultimately aiming to ensure fair treatment and due process for all parties involved in the legal proceedings.