Court orders review of provisional attachment under CGST Rules, directs reasoned decision by specified date

The High Court disposed of the writ petition challenging the provisional attachment of bank accounts under CGST Rules, 2017. The court directed the respondent to decide on the objections by way of a reasoned order before 5th October 2021, emphasizing the availability of alternative effective remedies and refraining from commenting on the case's merits to keep all parties' rights and contentions open.

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Issues:
Challenge to provisional attachment of bank accounts under CGST Rules, 2017.

Analysis:
The petitioner filed a writ petition challenging the provisional attachment of their bank accounts by the Commissioner, CGST & CX, Delhi East. The petitioner sought directions to operate the accounts for essential business expenses and outstanding dues. The petitioner's counsel assured the court that the current balance in the bank accounts would be maintained. On the contrary, the respondent's counsel argued that serious allegations were under investigation against the petitioner-company, with claims of non-cooperation by a former director, Mr. Virender Singh. The petitioner clarified that Mr. Virender Singh was no longer associated with the company, and his whereabouts were unknown.

The court noted that the petitioner had already filed objections to the attachment under Rule 159(5) of the CGST Rules, 2017. Referring to a previous judgment, the court emphasized that writs cannot be entertained when an alternative effective remedy exists before the competent authority. Therefore, the court disposed of the present writ petition, directing the respondent to decide on the objections by way of a reasoned order before 5th October, 2021. The court explicitly stated that it did not comment on the merits of the case, keeping the rights and contentions of all parties open. The respondent's counsel was instructed to promptly communicate the court's order to the concerned parties.

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