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TMI Blog2019 (10) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... Advocate ORDER MRS. S. SUJATHA J.- 1. The learned Additional Government Advocate accepts notice for the respondents. 2. The petitioner has challenged the bank attachment notices issued under section 45 of the Karnataka Value Added tax Act, 2003 ("the KVAT Act", for short) dated August 22, 2019 for attachment of overdraft bank account of the petitioner at annexures G, H and J, relating to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for which the Bank has agreed to give loan. Reliance is placed on the order of the cognate bench of this court in the case of Karnataka Bank Ltd. v. Commissioner of Commercial Taxes, Karnataka, Bangalore reported in [1999] 114 STC 19 (Karn) ; [1998] 45 Kant. L. J. 595. 5. The learned Additional Government Advocate appearing for the Revenue would submit that the bank has addressed a letter to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay to the assessing authority the said amount. A credit facility by way of overdraft or otherwise cannot be considered to be authorising the Department to realise the amount for which the bank has agreed to give the loan. If the account of the defaulter runs in debit and there being no credit in his account, this should not be considered as the money belonging to the defaulter. The bank is under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered as the money belonging to the defaulter. The bank is under no obligation to make payment to the Department. The bank does not owe the money to the defaulter. Hence, the attachment of the overdraft account of the petitioner by issuance of bank attachment notice impugned cannot be held to be sustainable. 8. Hence, annexures G, H and J of even date August 22, 2019 stand quashed. The Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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