attachment of bank account

[Bharat Cholleti]

Dear sir,

without their being consent from the bank account holder amounts cannot be transferred to government dues is there any case law, recently I heard about it , please share it sir

[Amit Agrawal]

You may refer to Section 79 (Recovery of tax) of the CGST Act, 2017.

[Ganeshan Kalyani]

Sir, garnishee award refers to an order passed by Govt on any person who is likely to pay any amount to the taxpayer directing him to deposit the sum into govt account instead of paying it to the default taxpayer. It is allowed in law to safeguard the revenue of the govt.

[Shilpi Jain]

Recovery cannot be initiated without finalisation of demand. Merely because some investigation is going on or a SCN is issued, recovery cannot be initiated.

However, if it is confirmed demand then recoevery can happen as per provisions of the law.

AI Summary

Recovery of tax through garnishee orders can divert payments to government once tax demand is finalized. Attachment of bank accounts for tax collection is permitted via a government-directed garnishee mechanism that diverts payments to the government without the account-holder's consent when recovery applies; however, recovery requires a confirmed demand and cannot be initiated solely on the basis of investigation or issuance of a show-cause notice.