Clipped from: https://www.taxscan.in/attachment-of-bank-account-before-expiry-of-appeal-period-calcutta-hc-stays-gst-recovery-proceedings/274117/
In a recent ruling, a Single Bench of the Calcutta High Court stayed the impugned order attaching the bank account of the petitioner for the recovery.
The bench of Justice Md. Nizamuddin observed that the statutory limitation period mentioned under Section 112 of the West Bengal Goods and Services Tax Act, 2017 (WBGST) to file the appeal had not expired.
The impugned order of the appellate authority is an appealable order before the tribunal but the said forum is not available at present. Also, the statutory period for filing the appeal under the statute is 90 days as per Section 112 of the West Bengal Goods and Services Tax Act has not expired.
The bench observed that as per Section 78 of the West Bengal Goods and Services Tax Act Act, the respondent West Bengal Goods and Services Tax Act authority is not entitled to take coercive steps before the expiry of the statutory period of filing the appeal.
However, from the record, it is clear that before the expiry of the statutory period of limitation for filing the appeal, the respondent-West Bengal Goods and Services Tax Act authority concerned has taken coercive action of recovery by way of issuing bank attachment orders.
The High Court let the respondents file an affidavit in opposition within four weeks; reply thereto, if any, to be filed by the petitioner within two weeks thereafter.
The Single Bench stayed the impugned order of attachment of the bank account on condition that the petitioner shall deposit 20% of the disputed tax within seven days and if such deposit is made within the time stipulated. The same will continue till the disposal of the writ petition.
The bench also directed the respondent bank that it shall allow the petitioner to operate the bank account in question on filing the documents as proof of making the aforesaid deposit of 20% of the disputed tax. The case was listed for the month of July 2023.To Read the full text of the Order CLICK HERE
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Sanjay Kedia vs Assistant Commissioner State Tax
CITATION: 2023 TAXSCAN (HC) 760
Counsel for Appellant: Mr. Asshat Agarwal
Counsel for Respondent: Mr. Dhilon Sengupta, Mr. Ayan Chakraborty, Ms. Sohini Mukherjee
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