2024 (11) TMI 181 - HC - GST

Lifting of attachment placed on the bank account of petitioner - recovery of the outstanding interest payable in pursuant to garnishee notice - HELD THAT - Though several contentions have been urged by both sides with regard to compliance/non compliance of the mandatory prescribed by the CGST Act prior to issue of notice, without expressing any opinion on the merits/demerits of the rival contentions and in order to provide one more opportunity to the petitioner to submit his reply to the alleged demand made in Annexure-E, it is deemed just and appropriate to dispose of this petition directing the petitioner to appear before respondent No. 2 on 14.10.2024 and to proceed further in accordance with law. Petition disposed off.

Summary

Issues:
Petitioner seeks writ of certiorari to quash impugned notice under CGST Act, demands lifting of bank account attachment, and other appropriate relief. Compliance of prescribed law prior to issuing notice under Section 79 of CGST Act challenged. Respondent contends following prescribed procedure. Court to provide petitioner opportunity to reply to alleged demand before further action.

Analysis:
The petitioner in this case sought various reliefs through a writ petition, including quashing of an impugned notice issued under the CGST Act and lifting the attachment on the bank account. The petitioner argued that the notice blocking the bank account was illegal, arbitrary, and against natural justice due to non-compliance with prescribed laws before issuance. The respondent, on the other hand, maintained that the procedure prescribed by law was duly followed before issuing the notice.

Upon hearing both parties and considering the contentions raised, the Court refrained from expressing any opinion on the merits of the arguments presented. Instead, the Court decided to grant the petitioner an additional opportunity to respond to the alleged demand mentioned in the impugned notice. Consequently, the Court directed the petitioner to appear before the concerned respondent on a specified date to address the matter in accordance with the law.

In the final order, the Court disposed of the petition and instructed the petitioner to appear before the respondent on a specific date. Furthermore, the Court directed the respondent to provide copies of relevant documents preceding the impugned notice to the petitioner for review. The petitioner was then required to submit a reply to these documents, following which the respondent would proceed further as per the law. Additionally, the Court ordered the lifting of the bank account blockage, except for the amount in dispute, with a condition to maintain a minimum balance until the conclusion of the proceedings, which the respondent was to finalize within a month from the specified date.