Court Orders Release of Bank Accounts and Installment Payment Plan for Outstanding Dues

The court ordered the release of certain bank accounts and allowed the petitioner to pay outstanding excise dues in equal monthly installments over eight months, subject to furnishing a bank guarantee. This decision aimed to balance safeguarding government revenue with addressing financial hardships faced by taxpayers, emphasizing the importance of facilitating compliance through installment payments while ensuring revenue security under the CGST Act.

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Issues:
Challenge to provisional attachment order under CGST Act.

Analysis:

Issue 1: Challenge to Provisional Attachment Order
The petitioner challenged the provisional attachment order dated 15.5.2018 passed by the respondent under section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner's bank accounts were attached, affecting its ability to conduct business smoothly. The petitioner argued that despite the attachment, it continued to deposit GST and CGST dues, showing willingness to clear outstanding dues. The petitioner requested permission to pay central excise dues in installments, citing financial hardships. The respondents argued that the attachment was to safeguard government revenue and that the petitioner, being a habitual defaulter, was not entitled to installment benefits. The court noted that the attachment caused hardships to the petitioner and could result in revenue loss. It ordered the release of certain bank accounts and allowed the petitioner to pay the outstanding excise dues of Rs. 55,00,000 in equal monthly installments over eight months, subject to furnishing a bank guarantee for the same amount within a month.

This judgment highlights the balance between protecting government revenue and addressing financial hardships faced by taxpayers. It emphasizes the importance of allowing installment payments to facilitate compliance while ensuring the security of revenue. The court's decision to release certain bank accounts and permit installment payments reflects a pragmatic approach to resolving disputes under the CGST Act, aiming to protect both the interests of the taxpayer and the government.

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