In the present case, the petitioners without availing the efficacious alternative remedy, have approached this Court. No cause of action has arisen in favour of the petitioners to invoke the inherent jurisdiction of this Court by way of filing the instant petition. Consequently, the instant petition is dismissed.
Section 83 of the CGST Act, 2017—Provisional Attachment of Bank Accounts -- The petitioner sought direction to the respondents to defreeze the bank account and unblock input tax credit of petitioner, which has been blocked vide mail dated 25.2.2021. The counsel for the petitioners submitted that respondent has provisionally attached the bank accounts of the petitioners under Section 83 of the Act, 2017 without issuing notice to them. Due to this, the petitioners are unable to pay statutory dues i.e. Taxes, electricity charges, salary to the employees etc. It is alleged that the petitioners were issuing job work challans to another firm without actual movement of battery scarp/ rejected batteries and by doing this, they have taken wrong ITC. The petitioners in all have committed a GST fraud of Rs. 28.46 crores. Thereafter, the department freezed their accounts vide letter dated 15.2.2021 and also blocked ITC of petitioner. The respondent counsel referred to Rule 159(5) CGST Rules, 2007 to contend that the petitioners ought to have exhausted the alternate and statutory remedy of approaching the competent authority to release their accounts. The court observed that the petitioners without availing the efficacious alternative remedy have approached this Court.
Held that:-The Hon’ble High Court dismissed the instant petition.
In the present case, the petitioners without availing the efficacious alternative remedy, have approached this Court. No cause of action has arisen in favour of the petitioners to invoke the inherent jurisdiction of this Court by way of filing the instant petition. Consequently, the instant petition is dismissed.
Section 83 of the CGST Act, 2017—Provisional Attachment of Bank Accounts -- The petitioner sought direction to the respondents to defreeze the bank account and unblock input tax credit of petitioner, which has been blocked vide mail dated 25.2.2021. The counsel for the petitioners submitted that respondent has provisionally attached the bank accounts of the petitioners under Section 83 of the Act, 2017 without issuing notice to them. Due to this, the petitioners are unable to pay statutory dues i.e. Taxes, electricity charges, salary to the employees etc. It is alleged that the petitioners were issuing job work challans to another firm without actual movement of battery scarp/ rejected batteries and by doing this, they have taken wrong ITC. The petitioners in all have committed a GST fraud of Rs. 28.46 crores. Thereafter, the department freezed their accounts vide letter dated 15.2.2021 and also blocked ITC of petitioner. The respondent counsel referred to Rule 159(5) CGST Rules, 2007 to contend that the petitioners ought to have exhausted the alternate and statutory remedy of approaching the competent authority to release their accounts. The court observed that the petitioners without availing the efficacious alternative remedy have approached this Court.
Held that:-The Hon’ble High Court dismissed the instant petition.