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TMI Blog2021 (8) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... oper manner and has given a representation/objection, dated 18.03.2021, seeking to lift the order of attachment under Section 83 of the CGST Act. This application is undoubtedly an application to be reckoned under Rule 159(5) of the CGST Rules. However, the fact remains that the appellant/Department has not disposed of the said application by passing a reasoned order. The respondent has failed to comply with the conditions imposed by this Court while granting bail vide order dated 19.02.2021. No doubt, the respondent have preferred Special Leave Petition before the Hon'ble Supreme Court, in which, notice has been ordered. Thus, as on date, the respondent have not complied with the order passed by this Bail Court and the objections fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein, a conditional order was passed and the respondent has partly complied with the conditions and being aggrieved by the other conditions imposed, the respondent have filed Petition for Special Leave to Appeal (Crl.) No.2666 of 2021, in which, notice has been ordered to the appellant/Department by order dated 19.04.2021. In the background of these facts, the respondent had approached the Writ Court, challenging the order of provisional attachment on the ground that, in terms of Section 67 of the CGST Act, there cannot be any attachment of future receivables so as to strangulate the entire business module of the writ petitioner and the recovery proceedings initiated by the appellant Department is contrary to the provisions of the CGST Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttaching the Bank Account. Furthermore, the Court held that the order of attachment of the Bank Account would infringe their right under Article 19(1)(g) of the Constitution of India and accordingly, directed the writ petitioner to deposit a sum of ₹ 1 Crore within one week from the date of receipt of a copy of the order and on such deposit, the attachment order is to be vacated. The appellant/Department was directed to complete the investigation and issue appropriate show cause notice as expeditiously as possible and it will be open to the appellant/Department to seek for cancellation of bail order granted in favour of the Managing Director and Director of the respondent company for having violated the conditions of the bail order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issue has been answered by the Hon'ble Supreme Court in the case of M/s.Radha Krishnan Industries v. State of Himachal Pradesh and others [Civil Appeal No.1155 of 2021, dated 20.04.2021 ] . In the said decision, the Hon'ble Supreme Court had pointed out that, where the Bank Account is attached, it prevents the person from operating the account and the business entity, whose bank account is attached, is seriously prejudiced by the inability to utilize the proceeds of the account for the purpose of business. Therefore, it was pointed out that the dual procedural safeguards inserted in Sub-Rule 5 of Rule 159 demand strict compliance. Further, it was pointed out that the Commissioner, who hears the objections, must pass a reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /objection dated 18.03.2021, ought to have pursued the same. Without pursuing the said objections, a challenge to the provisional attachment order has to be held to be premature. 8.Thus, for the above reasons, we are inclined to interfere with the order passed in the Writ Petition. This Writ Appeal is allowed and the order and directions issued in the Writ Petition are set aside. No costs. Consequently, connected Miscellaneous Petitions are closed. 9.We direct the respondent to submit fresh objections in terms of Rule 159(5) of the CGST Rules, within three days from the date of receipt of a copy of this judgment. On such objections being filed, the appellant/appropriate authority shall consider the objections and pass a speaking order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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