2024 (3) TMI 1263 - HC - GST

Seeking lifting of attachment of bank account - time limitation - Availment of input tax credit in excess of entitlement - HELD THAT - It will be beneficial to take note of the decisions passed in the cases of Badal Shambhubhai Shah vs. Directorate General of Goods and Service Tax Intelligence 2020 (3) TMI 617 - GUJARAT HIGH COURT and M/s. Futurist Innovation Advertising vs. Union of India Ors. 2022 (1) TMI 698 - BOMBAY HIGH COURT wherein direction was issued to the competent authority to lift the attachment over the bank account wherein the period of one year had elapsed. In the present case the same principle has to be applied to the appellant. Accordingly, the writ petition and the appeal along with the connected application are allowed with a direction to the authority concerned to lift the garnishee order dated 20th July, 2022 by addressing the Indian Oil Corporation and also lift the attachment over the appellant s bank account by addressing his bankers. Appeal allowed.

Summary

Issues involved:
The judgment involves issues related to denial of interim order in a writ petition, excess availing of input tax credit, rectification orders, garnishee order, attachment of bank account, and compliance with previous court decisions regarding attachment orders.

Issue 1: Denial of interim order in writ petition
The intra-Court appeal was filed against an order that declined to grant any interim order in the writ petition but directed the respondents to file their affidavit-in-opposition within a specified time frame. The Court decided to dispose of the writ petition, appeal, and connected application by a common order and judgment.

Issue 2: Excess availing of input tax credit
Allegations were made that the appellant had availed input tax credit in excess of the entitlement. The Assistant Commissioner of Revenue passed an order mentioning the details of the tax amounts realized from the credit ledger and the availed input tax credit for the period in question. The appellant challenged the order through a writ application before the Calcutta High Court, which was found satisfactory by the authority, leading to the conclusion that no further proceedings were required against the appellant.

Issue 3: Rectification orders and compliance with previous court decisions
The authority considered the rectification order and the earlier writ petition while finding the appellant's submission satisfactory, leading to the decision that the garnishee order issued to Indian Oil Corporation Limited and the attachment of the appellant's bank account were no longer effective. The Court referred to previous decisions to support the lifting of attachment orders after the lapse of a one-year period.

Judgment:
The Court applied the principle from previous cases and directed the concerned authority to lift the garnishee order dated 20th July, 2022, addressed to Indian Oil Corporation, and to lift the attachment over the appellant's bank account by addressing the appellant's bankers. The direction for compliance was given within a week from the date of receipt of the server copy of the order.