2023 (12) TMI 423 - HC - GST

Maintainability of petition - availability of alternative remedy - Provisional attachment of bank account - HELD THAT - Now as an order has been passed by the adjudicating officer deciding the show cause notices and as the petitioner is now desirous to assail the said order-in-original by adopting the appropriate remedy as available in law, it would be appropriate for the petitioner to proceed with such course of action of filing of an appeal to assail the order-in-original. Mr. Pathak states that such appeal would be filed within a period of four weeks from today. In so far as the petitioner's bank account is concerned, it would be open for the petitioner to make an application before the appellate authority praying for appropriate orders in regard to the revoking of the provisional attachment, contending that the impugned order dated 27 June, 2023 provisionally attaching the petitioner s bank account is illegal. If such an application is made, the same be decided as expeditiously as possible and preferably within a period of three weeks from the date of filing of the said application. The petition stands disposed of

Summary

Issues involved:
The primary issue involves the provisional attachment of the petitioner's bank account under Section 83 of the CGST/MGST Act. The petitioner challenges the jurisdiction of the respondents to attach the bank account and seeks relief through various writs and orders.

Details of the Judgment:

Provisional Attachment of Bank Account:
The petitioner, engaged in the business of manufacturing apparels, faced provisional attachment of the bank account by the respondents under Section 83 of the MGST Act. The petitioner had previously challenged the jurisdiction of the 2nd respondent to attach the bank account through a writ petition. The court disposed of the writ petition, declaring the provisional attachment as illegal and invalid under Section 83(2) of the CGST Act. The extension of the provisional attachment was also deemed illegal and set aside.

Show Cause Notice and Order-in-Original:
Subsequently, a show cause notice was issued to the petitioner under Section 122(1A) of the MGST Act, followed by an order-in-original dated 15 September, 2023. However, before the court could adjudicate on the matter, a fresh order provisionally attaching the bank account was issued on 27 June, 2023. The petitioner contended that the respondent lacked jurisdiction to issue a new attachment order after the previous orders were quashed.

Court's Decision and Directions:
The court opined that since an order-in-original had been passed by the adjudicating officer, the petitioner should appeal against it using the available legal remedy. The petitioner was advised to file an appeal within four weeks. Regarding the bank account attachment, the petitioner was allowed to apply to the appellate authority for revoking the provisional attachment, citing the illegality of the impugned order. The court instructed that such applications should be decided expeditiously, preferably within three weeks of filing.

Final Orders:
All contentions on the appeal and any interim applications were kept open. The petitioner was permitted to operate the bank account to withdraw a limited amount for the purpose of making a pre-deposit for the appeal. However, this permission did not revoke or alter the orders of provisional attachment. The petition was disposed of accordingly, with no costs imposed.