Bank account freeze over cancelled GST registration to be reviewed on representation, with interim transaction permission granted

A taxpayer dealing in exempt goods sought permission to operate a frozen bank account after its GST registration had been cancelled and treated as high risk. The HC directed the taxpayer to submit a detailed representation with supporting documents, required the bank to examine the claim in accordance with law, and to pass a speaking order within one month. Interim permission was granted to make transactions from the bank account until that representation is decided.

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Issues: Whether the petitioner should be permitted to operate its bank account pending consideration of its claim that GST registration was cancelled on account of exemption under Chapter 10 HSN, and whether the bank should decide the petitioner's representation by a speaking order.

Analysis: The petitioner's case was that it dealt in exempt goods, its GST registration had been cancelled on its application, and the account had been frozen only because the cancelled registration was treated as high risk. The Court directed the petitioner to submit a detailed representation with supporting documents and required the bank to examine the claim in accordance with law and pass a speaking order within one month.

Outcome: The petitioner was granted interim permission to make transactions from the bank account until the representation is decided.

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