Court dismisses stay application, allows release of funds for GST, petitioner withdraws, separate proceedings permitted.

The court dismissed the application seeking a stay of the impugned order and setting aside provisional attachment orders. The petitioner withdrew the application to pursue separate proceedings challenging the impugned order. Permission was granted to release 50% of the balance in attached accounts for current GST liabilities. Respondent No.2 had no objection to the petitioner complying with the communication for payment of GST liability. The court directed banks to transfer funds for GST payment and dismissed the application with liberty to pursue separate proceedings.

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Issues:
1. Stay of operation of the impugned order dated 9.3.2020
2. Setting aside provisional attachment orders dated 2.12.2019 and 3.12.2019
3. Relief sought to set aside the order dated 20.03.2020 issued by Deputy Director, DGGI
4. Compliance with the communication dated 20.03.2020 for payment of GST liability
5. Transfer of a specific sum for payment of current GST liability
6. Dismissal of the application with liberty for separate proceedings

Analysis:
1. The petitioner filed an application seeking a stay of the impugned order dated 9.3.2020 and to set aside the provisional attachment orders dated 2.12.2019 and 3.12.2019. The petitioner later decided to withdraw the application to initiate separate proceedings to challenge the impugned order. The petitioner requested permission to implement the communication dated 20.3.2020 to release 50% of the balance in the attached accounts for payment of current GST liabilities.

2. Respondent No.2 had no objection to the petitioner complying with the communication dated 20.03.2020. It was mentioned that over Rs. 6 crore was lying in the petitioner's bank accounts, which had been attached. Respondent No.2 suggested that the petitioner could utilize Rs. 3,20,00,000 for payment of GST liability from August 2019 onwards as per the communication dated 20.03.2020.

3. The court directed the concerned respondent banks to cooperate in transferring Rs. 3,20,00,000 for the payment of the current GST liability of the petitioner as per law. It was emphasized that the respondent banks should ensure compliance with this request and cooperate accordingly.

4. The application was dismissed as withdrawn with liberty granted for the petitioner to pursue separate proceedings as requested by the petitioner's counsel. The court ordered that a copy of this order be provided dasti for necessary action and record-keeping purposes.

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