Petitioner challenged provisional attachment of his bank account under Section 83 CGST Act for alleged GST dues of M/s Livax Plastics, claiming he was not a partner. The Court held the factual question required determination by the competent authority under Rule 159(5) CGST Rules and dismissed the petition, leaving him free to file objections.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)
TUESDAY. THE SECOND DAY OF JANUARY TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI AND
THE HONOURABLE SRI JUSTICE HARINATH.N
WRIT PETITION NO: 31188 OF 2023
Between:
...PETITIONER AND
...RESPONDENTS
Petition under Article 226 of the Constitution of India is filed praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue order or direction more particularly one in the nature of Writ of MANDAMUS declaring the action of the 4*^ respondent seizing of the petitioner's bank accounts and direct to restore the bank accounts of the petitioner and not to harass the petitioner and his family members as illegal, arbitrary and contrary and consequently direct the respondents not to harass the petitioner without any involvement of Livax Plastics Company to pay the GST due amounts even though the petitioner is not a partner in the Livax Company which the said registration IS cancelled, in the interest of justice.
lA NO: 1 OF 2023
Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to direct the 4‘^ respondent to restore the bank account of the petitioner
fandnottoharasshimandhisfamilymembers,pendingdisposaloftheabovewrit
petition.
Counsel for the Petitioner: SRI. S V INDIRA
Counsel for the Respondent No. 1: GP FOR INDUSTRIESCOMMERCE
Counsel for the Respondent Nos. 2 &3: Ms. SANTHI CHANDRA
Counsel for the Respondent No. 4: NONE APPEARED
The Court made the following: ORDER
r
HON’BLE SRI JUSTICE RAVI NATH TILHARI & HON’BLE SRI JUSTICE HARINATH.N
WRIT PETITION N0.31188 of 2023
ORDER:
Heard Ms. S.V.Indira, learned counsel for the petitioner and Ms. Santhi Chandra, learned Standing Counsel for respondent Nos.2 86 3.
- The petitioner is present in person pursuant to theorder passed on 06.12.2023 and 12.12.2023.
- By means of writ Petition under Article 226 of Constitution of India, the petitioner has prayed fordirectionto the respondents in particular respondent No.4 against the action of seizing the petitioner’s bank account andfordirection to restore the bank account of the petitioner. The prayer in the writ petition is as under;
“It is therefore prayed that this Hon’ble Court may be pleased to issue order or direction more particularly one in the nature of Writ of MANDAMUS declaring the action of the respondent seizingofthe petitioners bank accounts and direct to restore thebankaccountsof the petitioner and not to harass the petitioner andhisfamily members as illegal arbitrary and contrary and consequently direct the respondents not to harass the petitioner without anyinvolvementof Livax Plastics Company to pay the GST due amounts eventhoughthe petitioner is not a partner in the Livax Company which the said registration is cancelled in the interest ofjustice andtopass.”
- Respondent No.2 issued provisional attachment of Bank account of the petitioner under Section 83 of the CentralGoods
2
and Services Tax Act, 2017 (for short ‘COST Acf) totheBranch Manager of respondent No.4 mentioning that, the petitioneris the partner of M/s.Livax plastics and proceedings havebeen launched against the aforesaid (M/s. Livax plastics)thetaxable entity under Section 67(1) of the GST Act to determinethetax or any other amount due from the said person. 5. Learned counsel for the petitioner submits that the petitioner is not the partner in M/s.Livax Plastics.Shefurther submits that as per the additional material papers filed on 12.12.2023, the petitioner is having no dues. Consequently,the order of provisional attachment could not be passedandthe Bank be directed to release the petitioner’s bank account. 6. Learned Standing Counsel for respondent Nos.2 & 3 submits that against the provisional attachment, the petitioner has a statutory alternative remedy before the concerned Authority, under Section 83 of the COST Act R/w. Rule159of the Central Goods and Services Tax Rules, 2017 to seek lifting of the attachment. Consequently, the writ petitiondeservesnot to be entertained.
- We have considered the submission advanced by learned counsel for the parties and perused the material onrecord.
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cases
- Where, after the initiation of any proceeding underChapter XII, Chapter XIV or Chapter XV, the Commissioner isoftheopinion that for the purpose of protecting the interest ofthe Government revenue it is necessary so to do, he may, by orderinwriting,attach provisionally, any property, including bank account,belongingtothe taxable person or any person specified in sub-section(lA)ofSection 122 in such manner as may be prescribed.
- Every such provisional attachment shall cease to haveeffect after the expiry of a period of one year from the dateoftheorder made under sub section (1)."
Rule 159(5) of COST Rules reads as under:-
“(5) Any person whose property is attached may, [fileanobjectionin FORM GST DRC-22A] to the effect that the property attachedwasor is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC-23."
- On a specific query made by us, learned counsel forthe petitioner submitted that the petitioner was the partner in M/s.Livax^ Plastics upto 15.10.2022. From the provisional attachment order, the period for which there may beduesfor which the proceedings have been initiated against M/s.Livax Plastics, is not evident. The petitioner has also notstatedabout such period in the petition. If there are dues or noduesagainst the petitioner is a question of fact, which requiresdetermination at the first instance based on record. Making such anenquiry, in view of the submission advanced based on the additional materials, which have also not been filed on affidavit is
4
considered not to be proper or appropriate to record a finding on fact, at this stage in the exercise of writ jurisdictionand particularly when the petitioner has got the statutory alternative remedy against the provisional attachment order to file the objections before the competent authority which authority on being satisfied has the power to release the property.
- We are not inclined to entertain the writ petitionforthe aforesaid reasons.
No order as to costs.
As a sequel thereto, miscellaneous petitions, if any pending, shall also stand dismissed.
/
SDI- B. PRASADA RAO ASSISTANT REGISTRAR
//TRUE COPY//
SECTION OFFICER
To,
HIGH COURT
DATED:02/01/2024
ORDER
WP.No.31188 of 2023
%iLoe9P*^
Iccfpies 7^PP 'S7?IS'
DISMISSING THE WP WITHOUT COSTS
2 issues framed by the court
Whether the writ petition against provisional attachment of the petitioner's bank account under Section 83 CGST Act is maintainable despite an alternative statutory remedy.
Whether dues against the petitioner in connection with M/s Livax Plastics could be determined in writ jurisdiction.
4 provisions across 3 enactments
K Jagadeesh
The State of AP, Rep. by its Principal Secretary, Industries and Commerce Department
Directorate of General Goods and Service Tax Intelligence, Visakhapatnam Zonal Unit, Rep. by Senior Intelligence Officer Ashutosh Mehra
GST Inspector, Directorate of General Goods and Service Tax Intelligence, Vishakhapatnam
Branch Manager, IDFC First Bank, Kakinada Town
Ravi Nath Tilhari
Harinath.N
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
