Court declares illegal attachment of bank account by Assistant Commissioner of Service Tax, orders removal. Upholds CBDT Circulars.

The court declared the attachment of the petitioners' bank account as communicated by the Assistant Commissioner of Service Tax as illegal. The Assistant Commissioner was directed to vacate the attachment and inform the bank accordingly. The judgment emphasized adherence to CBDT Circulars that restrict coercive actions when necessary deposits are made for appeals. The decision was based on legal provisions and circulars preventing authorities from taking coercive measures when due processes, like making deposits for appeals, are followed. The petitioners' request to lift the attachment was granted, stressing compliance with the law and relevant circulars.

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Issues:
Challenge to recovery notice and bank account attachment under the Finance Act, 1944.

Analysis:
The petition challenged the recovery notice and subsequent attachment of the petitioners' bank accounts by the Assistant Commissioner of CGST. The attachment was related to dues payable by another entity, M/s. Sampark Marketing and Advertising Solutions Pvt. Ltd., under the Finance Act, 1944. The petitioners, who are directors of M/s. Sampark, contested only the attachment of their bank accounts as communicated by Allahabad Bank. The undisputed facts revealed that M/s. Sampark received an order confirming a specific amount, against which they filed an appeal and made a deposit as required by law to stay the recovery of the balance amount. Despite this, the petitioners' bank accounts were attached for recovery. Subsequently, the Commissioner (Appeals) dismissed M/s. Sampark's appeal, leading to a further appeal to the Tribunal, where a deposit was made. The petitioners sought the vacation of the bank account attachment, citing relevant CBDT Circulars that prohibit coercive actions when deposits are made for pending appeals. The court emphasized that the attachment was against the binding circulars and ordered the vacation of the attachment on the petitioners' bank accounts in Allahabad Bank.

The court declared the attachment of the petitioners' bank account as communicated in the letter by the Assistant Commissioner of Service Tax as illegal. The Assistant Commissioner was directed to vacate the attachment and inform the bank accordingly. The judgment highlighted the importance of adhering to CBDT Circulars that restrict coercive actions when required deposits are made for appeals. The court's decision was based on the legal provisions and circulars that prevent authorities from adopting coercive measures when due processes are followed, such as making necessary deposits for appeals. The petitioners' plea for lifting the attachment was upheld, emphasizing the need to comply with the law and relevant circulars in such matters.

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