2021 (3) TMI 1239 - HC - GST

Court orders partial release of bank account attachment, allows appeal

Fine Exime Private Limited Versus Union of India and ors.

The court directed the withdrawal of the provisional attachment of the petitioner's bank account to the extent of 10% of the credited amount as of the ... Seeking withdrawal of the provisional attachment order - HELD THAT:- The order in original is appeallable before Commissioner (Appeals) subject to payment of 10% of the demand. Since petitioner has a statutory right of filing appeal against the order in original, to make such right meaningful, we direct that provisional attachment of the aforesaid bank account of the petitioner shall be withdrawn to the extent of 10% of the credited amount as on today with the remaining amount of 90% continuing under debit freeze, which shall be subject to outcome of the appeal or such order that may be passed by the appellate authority. Stand over to 20th April, 2021. Issues:Challenging provisional attachment of bank account, confirmation of demand by Deputy Commissioner, withdrawal of provisional attachment order, fraudulent refund obtained by petitioner, appeal against order in original.Analysis:The writ petition was initially filed challenging the provisional attachment of the petitioner's bank account by respondent No.2. Subsequently, a show cause notice was issued to the petitioner, followed by an order in original confirming a demand of Rs. 5,20,13,134.00 along with interest and penalty by the Deputy Commissioner of CGST and Central Excise, Mumbai Central Commissionerate. The petitioner, through their counsel, requested the withdrawal of the provisional attachment order, arguing that the matter had attained finality with the issuance of the order in original, pending appeal. On the other hand, the respondent's counsel alleged that the petitioner fraudulently obtained the entire refund, claiming that the premises of the petitioner were not found during an official visit. The respondent's counsel opposed the withdrawal of the provisional attachment at this stage.Upon hearing both parties, the court, without expressing any opinion on the merit of the case, noted that the order in original was appealable before the Commissioner (Appeals) upon payment of 10% of the demand. Recognizing the petitioner's statutory right to appeal, the court directed the withdrawal of the provisional attachment of the petitioner's bank account to the extent of 10% of the credited amount as of the current date. The remaining 90% of the amount would continue under debit freeze, subject to the outcome of the appeal or any order passed by the appellate authority. The matter was adjourned to 20th April, 2021 for further proceedings.