0

Court directs the bankers of the Petitioners to debit freeze the account of the Petitioners prejudice to their rights and contentions : High Court of Delhi

Present writ petition has been filed challenging the letter dated 07 th December, 2020 issued under Section 83 of the CGST Act, 2017 whereby the Respondent has directed the Bankers to provisionally attach the bank accounts as well as immovable properties of the three Petitioners and was upheld by High Court of Delhi through the learned bench led by HON’BLE MR. JUSTICE MANMOHAN and  HON’BLE MR. JUSTICE SUDHIR KUMAR JAIN in the case of NAVAL KUMAR & ORS. vs COMMISSIONER OF CENTRAL TAXES GST DELHI EAST (W.P.(C) 3659/2022 & C.M.Nos.10847-10848/2022) on 08th March, 2022.

Brief Facts of the case are that Respondent has directed the Bankers to provisionally attach the bank accounts as well as immovable properties of the three Petitioners. Petitioners also seek directions to the Respondents to release/de-freeze the personal bank accounts as well as immovable properties of the Petitioners which were provisionally attached vide the impugned letters.

On the last date of hearing, learned counsel for the Respondent had sought time to obtain instructions. He states that a show cause notice dated 15th July, 2021 under Section 74 of the CGST Act has been issued to all the Petitioners proposing imposition of penalty and fresh DRC-22 notices have been issued to all the three Petitioners debit freezing their bank accounts for Rs.25,000/- each to secure the penalty imposed upon them under Section 122(3) of the CGST Act. July, 2021 under Section 74 of the CGST Act has been issued to all the Petitioners proposing imposition of penalty.

Learned counsel for the Petitioners states that without prejudice to the rights and contentions of the petitioners, they have no objection to their accounts being debit freezed for Rs.25,000/- each, subject to final determination of the show cause notices. He, however, prays that the amount lying over and above Rs.25,000/- in the bank accounts of each of the Petitioners be allowed to be withdrawn/utilized.

Court directs the bankers of the Petitioners to debit freeze the account of the Petitioners for Rs.25,000/- each. The immovable properties of the Petitioners are directed to be released/de-freezed not later than three days from today. The Petitioners’ bankers are also directed to allow the Petitioners to utilize the amount lying in their bank accounts over and above the amount of Rs.25,000/-

Click here to read the Judgment

Judgment reviewed by – Amit Singh

Leave a Reply

Your email address will not be published. Required fields are marked *

Open chat