2023 (9) TMI 343 - HC - GST

Seeking to unfeeze Bank Account of petitioner - Revenue contended that the Petitioner had not cooperated by producing the relevant materials/documents for ascertainment of the tax - HELD THAT - Mr. Takke (on behalf of State) on instructions of the said officer who is present in the Court would submit that the impugned order dated 24th June 2022, passed under Section 73(5) of the Maharashtra Goods and Service Tax Act, 2017 (MGST Act), can be set aside. As also the consequent attachment of the Petitioner s bank account vide notice dated 23rd November 2022, issued in Form GST, DRC-13 can also be set aside, with liberty to the Revenue to pass a fresh appropriate order. The impugned order as well as attachment set aside - This however shall be subject to the Petitioner extending full cooperation in regard to the fresh assessment now being undertaken by the Revenue. Petition disposed off.

Summary

Issues involved:
The petition involved seeking writs of Certiorari, Mandamus, and declaration of unconstitutionality of a section of the Act, along with interim reliefs and costs.

Writs of Certiorari:
The Petitioner requested the Court to issue writs of Certiorari to quash the impugned intimation, show cause notice, order, and notice issued under different sections of the Act for the period 2018-19. The Petitioner sought to challenge the validity and legality of these actions taken by Respondent No. 2.

Writ of Mandamus:
The Petitioner also sought a writ of Mandamus directing Respondent No. 2 to instruct the Bank to unfreeze the Petitioner's bank account, emphasizing the need for immediate action in this regard.

Declaration of Unconstitutionality:
The Petitioner requested the Court to declare section 169 of the Act as unconstitutional to the extent it provides for notice/order being treated as served if available only on the common portal, highlighting a potential issue with the current legal framework.

Interim Reliefs:
Pending the final disposal of the petition, the Petitioner requested the Court to restrain the Respondents from executing the impugned order and notice, and to direct the release of the bank attachment, emphasizing the need for temporary relief during the legal proceedings.

Court Proceedings and Decision:
During the hearing, it was noted that the Petitioner had cooperated by providing relevant documents to the designated officer of the Revenue for tax ascertainment. The Revenue acknowledged this cooperation and considered further steps, including a possible audit. Eventually, the Revenue agreed to set aside the impugned order passed under Section 73(5) of the MGST Act and the bank account attachment, with the condition that the Petitioner continues to cooperate in the fresh assessment.

Conclusion:
The Court accepted the statement made by the Revenue, setting aside the impugned order and attachment subject to the Petitioner's continued cooperation in the fresh assessment. The Court disposed of the petition accordingly, with all contentions of the parties expressly kept open and no costs awarded.