Statutory notice before account attachment is mandatory; recovery action fails when Form GST DRC-13 is not served.

Recovery attachment of a taxpayer's accounts cannot be sustained unless the prescribed statutory notice and procedure are first complied with. The Madras High Court held that an attachment issued for alleged tax dues of another entity was invalid because the petitioner had not been served with Form GST DRC-13 as required before recovery action under Section 79(1)(c)(i) of the Tamil Nadu GST Act read with Rule 145(1) of the Tamil Nadu GST Rules. The attachment order was therefore set aside, and the respondents were permitted to proceed afresh only in accordance with law after issuing the required notice.

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Issues: Whether the order attaching the petitioner's accounts could be sustained without serving the mandatory notice prescribed before recovery action.

Analysis: The attachment was sought to be made for alleged tax dues of another entity, but the notice in Form GST DRC-13 had not been served on the petitioner. The recovery measure was therefore taken without compliance with the procedure contemplated under Section 79(1)(c)(i) of the Tamil Nadu Goods and Services Tax Act, 2017 read with Rule 145(1) of the Tamil Nadu Goods and Services Tax Rules, 2017. In the absence of proper notice, the attachment could not be justified.

Conclusion: The impugned attachment order was unsustainable and was set aside in favour of the petitioner.

Final Conclusion: The writ petition succeeded, and the respondents were left at liberty to proceed afresh only in accordance with law after issuing the required notice.

Ratio Decidendi: Recovery attachment affecting a taxpayer's accounts cannot be sustained unless the prescribed statutory notice and procedure are first complied with.

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