2024 (4) TMI 776 - HC - GST

Validity of assessment order - Attachment of Bank Account of petitioner - HELD THAT - The impugned order of attachment pre-date the order passed by this Court on 26.09.2023. Therefore, in the absence of an order staring against the petitioner as on date, continuance of impugned attachment order dated 03.06.2022, bearing reference Na.Ka.No.A8/1944/2021, cannot be sustained. It has to be set aside. Already, this Court has directed the authorities to grant personal hearing to the petitioner and thereafter, pass orders within a period of three months from the date of receipt of a copy of that order. However, more than three months have lapsed, since the order was passed on 26.09.2023. The first respondent is therefore directed to complete the proceedings within a period of 30 days from the date of receipt of a copy of this order. The writ petition is disposed off.

Summary

Issues involved:
The challenge to an impugned communication attaching petitioner's bank account, setting aside of assessment orders for multiple years, delay in bringing bank attachment to the court's notice, and the direction to complete proceedings within a specified timeline.

Impugned Communication Challenge:
The petitioner challenged a communication dated 03.06.2022, from the first respondent attaching the petitioner's bank account with the second respondent Bank. Despite earlier assessment orders being set aside, the bank attachment order predating the court's decision was deemed unsustainable. The court directed the authorities to complete proceedings within 30 days from the date of the order, with the petitioner's cooperation. Failure to cooperate may result in the first respondent passing appropriate orders and potentially attaching the bank account.

Setting Aside of Assessment Orders:
The petitioner had faced assessment orders for three consecutive years, which were challenged in court. The court set aside these orders and remitted the case back to the authorities, directing a personal hearing for the petitioner and completion of proceedings within three months. The court noted a delay in the completion of proceedings beyond the specified timeline and directed the first respondent to conclude the proceedings within 30 days, warning of potential bank account attachment if the petitioner fails to cooperate.

Delay in Bringing Bank Attachment to Court's Notice:
Despite the earlier orders setting aside the assessment periods from 2017 to 2020, the bank attachment order from 03.06.2022, remained in effect. The court highlighted that the petitioner should have raised this issue during the disposal of the writ petitions in 2023. The court emphasized that the continuation of the bank attachment order without a current adverse order against the petitioner cannot be sustained and directed its setting aside.

Direction to Complete Proceedings:
The court directed the first respondent to complete the proceedings within 30 days from the date of the order, emphasizing the petitioner's cooperation. Failure to cooperate may lead to the first respondent passing appropriate orders in the remanded tax cases, potentially resulting in the attachment of the petitioner's bank account. The writ petition was disposed of with these directions, without any costs incurred, and connected Miscellaneous Petitions were closed accordingly.