Delhi HC refuses to entertain writ against Bank Account Attachment citing alternative remedy to file objections under GST Rule 159(5)

As per the recent Delhi High Court order, the court refused to entertain writs against Bank Account Attachment as petitioner has efficacious alternative remedy to file objections under Rule 159(5) of the CGST Rules 2017

The writ petition was filed with the court challenging the order dated 31st March 2021 directing the Bankers to provisionally attach the petitioner’s personal bank accounts and immovable properties. Petitioner also seeks directions to the respondent to de-freeze the personal bank accounts and the immovable properties of the petitioner.

Learned counsel for the petitioner states that the petitioner is not a ‘taxable person’ as defined under Section 2(107) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to ‘CGST Act’) and is not liable to pay any tax under the said Act. Also there is no material on record to show the involvement of the petitioner in the alleged offence and so no prima facie case is made out against the petitioner in terms of Section 132 of the CGST Act.

The Court in Watermelon Management Services Private Limited vs. The Commissioner, Central Tax, GST Delhi (East) & Anr., W.P.(C) No.3274/2020 has held that writs cannot be entertained as petitioner has efficacious alternative remedy before competent authority by filing objections under Rules 159(5) of the CGST Rules, 2017.

Keeping in view the aforesaid, the present writ petition is disposed of with liberty to the petitioner to file his objections under Section 159(5) of the CGST Rules, 2017. In the event, such objections are filed within two weeks, the same shall be decided by the competent authority in accordance with law within four weeks, thereafter.

To Read the order Download the PDF Given Below: