2019 (6) TMI 1347 - HC - VAT and Sales Tax

Court orders petitioner to maintain bank balance as security under garnishee order, sets timelines for request disposal

The court directed the petitioner to maintain a minimum balance in the bank account as security while allowing operation of the account under the ... Garnishee Order - adjustment of dues - CST Act - HELD THAT:- The petitioner is given liberty to request first respondent to pass orders for recalling the garnishee order issued to Axis Bank. If such a request is made, the petitioner is maintaining minimum balance of 8 lakh rupees towards security for answering the claim of respondents, the Assistant Commissioner of Sales Tax passes an order on the request of the petitioner for recalling the garnishee order within two weeks from the date of receipt of such request. Minimum balance amount of ₹ 8 lakhs now directed to be maintained is subject to further or final orders on Ext.P5. Petition disposed off. Issues:1. Request for adjusting dues under CST Act and refund of balance amount.2. Continuation of garnishee order on petitioner's bank account.3. Disposal of Ext.P5 request and recalling of garnishee order.Analysis:Issue 1: The petitioner requested the adjustment of dues under the CST Act for the year 2013-14 and the refund of the balance amount. The court, after considering the demand raised against the petitioner and the garnishee order issued, directed the petitioner to maintain a minimum balance of 8 lakh rupees in the account as security. The petitioner was allowed to operate the bank account while the garnishee order was in place.Issue 2: The petitioner continued to maintain the required balance in the account, and the garnishee order issued to Axis Bank was still in effect. The petitioner sought the recalling of the garnishee order while requesting the respondent to consider and dispose of Ext.P5. The court noted that the learned Government Pleader did not oppose the petitioner's request for disposing of Ext.P5 and made the order dated 14.8.2018 final in the writ petition.Issue 3: The court directed the first respondent to consider and dispose of Ext.P5 within four weeks from the date of receipt of the order. The petitioner was granted the liberty to request the first respondent to recall the garnishee order issued to Axis Bank. If such a request was made and the petitioner maintained the minimum balance of 8 lakh rupees, the Assistant Commissioner of Sales Tax was directed to pass an order on the request for recalling the garnishee order within two weeks. The maintenance of the minimum balance was subject to further or final orders on Ext.P5.In conclusion, with the directions provided by the court, the writ petition was disposed of, addressing the issues related to the adjustment of dues, the garnishee order, and the disposal of Ext.P5 request effectively.