2020 (10) TMI 148 - HC - GST

Punjab & Haryana HC grants impleadment, quashes provisional attachment orders

The Punjab and Haryana High Court allowed the application to implead HDFC Bank as a respondent in the case under Order 1 Rule 10. The court also granted ... Release of provisionally attached bank account and the property of the petitioner - Section 83 of Punjab Goods and Service Tax Act and Central Goods and Service Tax 2017 - HELD THAT:- The petition is disposed of with the direction that all the accounts of the petitioner be defrozen and the petitioner would maintain the amount which was present in the accounts on the date of provisional attachment. Issues Involved:Application for impleading HDFC Bank as a respondent under Order 1 Rule 10; Writ petition for quashing order confirming provisional attachment of bank account and property under PGST/CGST Act.Analysis:The judgment by the Punjab and Haryana High Court involved two main issues. Firstly, the application under Order 1 Rule 10 was allowed to implead HDFC Bank as respondent No.4 in the case. The court accepted the reasons recorded in the application, allowing the Amended Memo of Parties to be taken on record. This procedural aspect was addressed by the court to ensure all relevant parties were included in the proceedings.Secondly, the writ petition sought to quash orders confirming the provisional attachment of the petitioner's bank account and property under the Punjab Goods and Service Tax Act and Central Goods and Service Tax Act. The petitioner requested defreezing of all seven accounts to continue business operations, with an undertaking to maintain the balance as of the date of provisional attachment in the accounts. It was highlighted that the petitioner had overdrawn the CC Account limit, which was acknowledged by the bank's advocate.During the hearing, the bank's advocate agreed to the defreezing of accounts, acknowledging the petitioner's commitment to maintaining the pre-attachment balances. The Additional Advocate General did not contest the logic of the petitioner's request. Consequently, the court disposed of the petition by directing the defreezing of all accounts and instructing the petitioner to maintain the pre-attachment balances. Additionally, any pending applications were also disposed of as the main case had been decided. The judgment addressed the procedural and substantive aspects of the case effectively, ensuring fairness and compliance with legal principles.