Section 79 of the CGST Act, 2017 — Recovery of dues –-- The petitioner sought a direction to the second respondent to release the blocked funds in the petitioner's Bank Account. The petitioner filed their GSTR-3B for the month of July 2017 and due to technical glitches, they were unable to capture the ITC eligibility, availed for the month of July 2017. They manually deducted the ITC duly eligible, availed by them. While filing the annual GST return for the financial year 2017-18, the petitioner duly reflected the actual availed ITC and output GST liability. An enquiry was initiated. The petitioner attended the enquiry and submitted the details to the first respondent. But the second respondent issued notice to the Bank asking them to block funds in the petitioner's account under Section 79(1)(c)(i). But the respondents have not provided the copy of the said notice. The court observed that no prejudice would be caused to the respondents if the petitioner's representation seeking for release of the blocked funds in the petitioner's Bank Account, maintained with the fourth respondent is considered, on merits and in accordance with law, after giving due consideration to the submissions made by the petitioner.

Held that:- The Hon’ble High Court directed the petitioner to submit a fresh representation to the second respondent, within a period of one week. Thereafter, the second respondent shall pass final orders, on merits and in accordance with law, after giving due consideration to the grievances raised by the petitioner, within a period of four weeks. Till final orders are passed on the petitioner's representation, the respondents 1 to 3 are directed not to attach funds lying in any other bank account of the petitioner, pertaining to the subject demand.