The first appellant shall consider and pass appropriate interim orders, if found tenable, considering the lifting of the provisional attachment in respect of a few bank accounts to enable the first respondent to carry on its business activities.
Section 6 of the CGST Act, 2027- Proper Officer –--The appellant department filed an appeal against this court order dated 10.03.2021 whereby attachment of bank accounts of the petitioner were lifted. The counsel for the appellant submitted that a separate notice was issued on 02.02.2021 to the respondent to participate in a personal hearing, but the respondent informed the Department that they have filed a writ petition and obtained an order of stay of the summons. The counsel for the appellants submitted that the impugned order dated 10.03.2021 is yet to be given effect to and it is also submitted that the interest of Revenue would suffer, if the attachments are to be lifted at this stage, especially, when the first respondent is not cooperating in the investigation. The court observed that if the first respondent is able to explain to the satisfaction of the officer that the provisional attachment is not warranted, it goes without saying that the Commissioner can exercise powers and lift the order of provisional attachment or otherwise confirm the provisional attachment. Admittedly, the investigation is yet to be completed and therefore, time is yet to come for issuance of show cause notice for recovery of alleged tax due or for that matter to crystallize the alleged liability. Simultaneously, the business interest of the respondent also needs to be taken into consideration while considering as to whether bank accounts are required to be provisionally attached.
Held that:- The Hon’ble High Court directed that the order dated 10.03.2021 shall remain stayed subject to the direction that the authorized representative of the first respondent shall appear on 29.03.2021; the first appellant is directed to pass a speaking order within 10 days therefrom.
The first appellant shall consider and pass appropriate interim orders, if found tenable, considering the lifting of the provisional attachment in respect of a few bank accounts to enable the first respondent to carry on its business activities.
Section 6 of the CGST Act, 2027- Proper Officer –--The appellant department filed an appeal against this court order dated 10.03.2021 whereby attachment of bank accounts of the petitioner were lifted. The counsel for the appellant submitted that a separate notice was issued on 02.02.2021 to the respondent to participate in a personal hearing, but the respondent informed the Department that they have filed a writ petition and obtained an order of stay of the summons. The counsel for the appellants submitted that the impugned order dated 10.03.2021 is yet to be given effect to and it is also submitted that the interest of Revenue would suffer, if the attachments are to be lifted at this stage, especially, when the first respondent is not cooperating in the investigation. The court observed that if the first respondent is able to explain to the satisfaction of the officer that the provisional attachment is not warranted, it goes without saying that the Commissioner can exercise powers and lift the order of provisional attachment or otherwise confirm the provisional attachment. Admittedly, the investigation is yet to be completed and therefore, time is yet to come for issuance of show cause notice for recovery of alleged tax due or for that matter to crystallize the alleged liability. Simultaneously, the business interest of the respondent also needs to be taken into consideration while considering as to whether bank accounts are required to be provisionally attached.
Held that:- The Hon’ble High Court directed that the order dated 10.03.2021 shall remain stayed subject to the direction that the authorized representative of the first respondent shall appear on 29.03.2021; the first appellant is directed to pass a speaking order within 10 days therefrom.