Statutory appeal remand and bank attachment relief granted where limitation dismissal lacked merits hearing and pre-deposit was substantially complied with.

A statutory appeal rejected only on limitation, without a merits decision or personal hearing, may be remanded for fresh consideration where the appellate forum is unavailable and the appeal mechanism contemplates a further opportunity of challenge. The court also held that continued bank account attachment was unsustainable where the taxpayer had already made the required pre-deposit and substantial recovery had been effected, making further coercive recovery unjustified. The writ petition therefore succeeded to the extent of setting aside the appellate rejection and the attachment, with remand of the appeal for decision on merits.

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Issues: (i) Whether the order rejecting the statutory appeal for limitation without adjudication on merits was liable to be set aside and the matter remanded for fresh consideration; (ii) Whether the attachment of the petitioner's bank account could be sustained in the circumstances.

Issue (i): Whether the order rejecting the statutory appeal for limitation without adjudication on merits was liable to be set aside and the matter remanded for fresh consideration.

Analysis: The appeal had been dismissed on limitation without a merits determination, and the record reflected that no personal hearing had been afforded. In view of the statutory scheme permitting a further opportunity of challenge and the fact that the appellate tribunal had not yet been constituted, the matter was considered appropriate for reconsideration by the appellate authority on merits.

Conclusion: The rejection order was set aside and the matter was remanded to the appellate authority for decision on merits, in favour of the petitioner.

Issue (ii): Whether the attachment of the petitioner's bank account could be sustained in the circumstances.

Analysis: The petitioner had already made a pre-deposit and substantial recovery had also been effected. In that context, and having regard to the scheme permitting an appeal upon payment of 10% of the disputed tax, the continued attachment of the bank account was found unsustainable.

Conclusion: The bank account attachment was set aside, in favour of the petitioner.

Final Conclusion: The writ petition succeeded to the extent of setting aside the appellate rejection and the bank account attachment, with remand of the appeal for fresh adjudication on merits.

Ratio Decidendi: Where a statutory appeal is rejected without merits adjudication and without a fair opportunity of hearing, and the statutory appellate forum is unavailable, the matter may be remanded for fresh decision on merits; an attachment cannot be sustained when the statutory pre-deposit regime has substantially been complied with and the recovery already secured renders further coercive attachment unjustified.

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