Court extends bank guarantee period, warns of account attachment for default. Ruling absolute.

The court allowed the application, extending the period for furnishing the bank guarantee for a sum of rupees fifty-five lakhs for an additional four months from the date of the judgment. The court emphasized that any default in installment payments would enable the respondent to utilize the provisions of section 83 of the Central Goods and Services Tax Act, 2017, to attach the applicant's bank accounts. The ruling was made absolute without any costs imposed.

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Issues:
Extension of time period for furnishing bank guarantee.

Analysis:
The judgment pertains to an application seeking an extension of the time period for furnishing a bank guarantee as directed by a previous court order. The applicant requested a further four-month extension due to the inability to provide the bank guarantee within the stipulated time frame. The applicant had already paid three installments but could not pay the fourth due to the attachment of their bank account by the respondent authorities. The applicant's financial condition was cited as the reason for the delay. The respondent did not dispute the timely payment of the first three installments. The court considered the amount due, the payments made, and the attachment of the applicant's bank account. It found the applicant's request reasonable, especially since a substantial portion of the outstanding amount had already been paid. However, to protect the Revenue's interest, the court allowed the extension while reserving the right for the respondent to resort to legal provisions for attaching the applicant's bank accounts in case of future defaults.

In conclusion, the court allowed the application, extending the period for furnishing the bank guarantee for a sum of rupees fifty-five lakhs for an additional four months from the date of the judgment. The court emphasized that any default in installment payments would enable the respondent to utilize the provisions of section 83 of the Central Goods and Services Tax Act, 2017, to attach the applicant's bank accounts. The ruling was made absolute without any costs imposed.

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