2026 (1) TMI 638 - SCH - GST

Defreezing bank accounts when petition lacks supporting evidence - costs order set aside; matter remitted for reconsideration

Dominant issue: whether bank accounts should be defrozen in absence of supporting materials. The SC observed the High Court found the petitioner's reply ... Defreezing of bank accounts - no supporting materials have been brought on record - it was held by High Court that 'As prayed list on 8.12.2025 as fresh in order to enable the learned Additional Advocate General to file a better personal affidavit of the Principal Secretary, State Tax, Lucknow.' - HELD THAT:- The High Court was not satisfied with the reply filed by the petitioner herein. In the facts and circumstances of the case, the part of the impugned order by which costs of Rs. 5000/- has been imposed set aside - Let the matter now proceed further before the High Court in accordance with law. SLP disposed off. Issues: Whether the component of the High Court's order imposing costs of Rs. 5,000 on the Principal Secretary, State Tax, Lucknow should be set aside.Analysis: The petition challenged only the portion of the High Court order that imposed monetary costs while granting time to file a further affidavit with better particulars. The Supreme Court examined the record of filings and the High Court's exercise of discretion in imposing costs alongside granting extension for filing further material. Having considered the factual matrix and the relief sought, the Supreme Court construed the appropriate corrective measure as limited to removing the cost imposition while permitting the High Court proceedings to continue and directing further progress in accordance with law.Conclusion: The component of the High Court order imposing costs of Rs. 5,000 is set aside and the petitioner's challenge to that imposition is upheld, in favour of the Appellant.