Blocking of the bank account and cancellation of registration stayed so that the petitioner at least may start his business.
Section 83 of the CGST Act — Provisional Attachment of Bank Accounts --The petitioner challenged on three issues namely, there has been provisional attachment of the Bank Account, the registration certificate under the GST is canceled, and input credit ledger is blocked. The provisional attachment was made by an order dated 17.02.2021 and cancellation of the registration as passed on 26.03.2021. The court observed that attachment of the bank account was on 17.02.2021, the reply was filed by the petitioner on 22.03.2021 and the same has not been decided. Therefore, it would be non-compliance of Rule 159(5) of the CGST Rules. With respect to the cancellation of registration, the reasons have not been assigned as mandated under Rule 21 of the Rules. The court observed that the business of the petitioner stands closed for attachment of the bank account and cancellation of registration, strict compliance is required as per the Act and Rules.
Held that:- The Hon’ble High Court directed that the attachment of the Bank Account which was made as per the order dated 17.02.2021 shall remain stayed and further the order for cancellation of registration dated 26.03.2021 shall remain stayed, till the next date of hearing. Listed the matter in the second week of September, 2021.
Blocking of the bank account and cancellation of registration stayed so that the petitioner at least may start his business.
Section 83 of the CGST Act — Provisional Attachment of Bank Accounts --The petitioner challenged on three issues namely, there has been provisional attachment of the Bank Account, the registration certificate under the GST is canceled, and input credit ledger is blocked. The provisional attachment was made by an order dated 17.02.2021 and cancellation of the registration as passed on 26.03.2021. The court observed that attachment of the bank account was on 17.02.2021, the reply was filed by the petitioner on 22.03.2021 and the same has not been decided. Therefore, it would be non-compliance of Rule 159(5) of the CGST Rules. With respect to the cancellation of registration, the reasons have not been assigned as mandated under Rule 21 of the Rules. The court observed that the business of the petitioner stands closed for attachment of the bank account and cancellation of registration, strict compliance is required as per the Act and Rules.
Held that:- The Hon’ble High Court directed that the attachment of the Bank Account which was made as per the order dated 17.02.2021 shall remain stayed and further the order for cancellation of registration dated 26.03.2021 shall remain stayed, till the next date of hearing. Listed the matter in the second week of September, 2021.