CM APPL. 34374/2021

Allowed, subject to all just exceptions.

Accordingly, the application stands disposed of.

W.P.(C) 11165/2021n & CM APPL. 34373/2021

Present writ petition has been filed challenging the order dated 13^th September, 2021 passed by the Commissioner, CGST & CX, Delhi East whereby the bank accounts (No. 072105000934 maintained at ICICI Bank Ltd, New Delhi, No. 50200007530441 maintained at HDFC Bank Ltd, New Delhi and No.916020029282287 maintained at Axis Bank Ltd, New Delhi) of the petitioners have been provisionally attached. Petitioner also seeks directions that the accounts may be allowed to be operated to the extent of essential expenditure to run the business and to clear outstanding dues.

Learned counsel for the petitioner undertakes to this Court that the balance as of today in the petitioner’s bank accounts shall be maintained. He, however, prays that the petitioner be allowed to operate the aforesaid bank accounts as salaries have to be paid to the employees and expenses have to be incurred.

Per contra, Mr. Harpreet Singh, learned counsel for respondents states that the there are serious allegations against the petitioner-company which are under investigation. He further states that Mr. Virender Singh who was running and managing the petitioner-company is not cooperating in the investigation.

In rejoinder, learned counsel for the petitioner states that Mr. Virender Singh was a former director of the petitioner-company and his current whereabouts are not known to the petitioner.

Admittedly, the petitioner has filed its objections to the attachment under Rule 159(5) of the Central Goods and Services Tax Rules, 2017 (for short ‘CGST Rules, 2017’). This Court in Watermelon Management Services Private Limited vs. The Commissioner, Central Tax, GST Delhi (East) & Anr., W.P. (C) No. 3274/2020, dated 29th May, 2020 has held that writs cannot be entertained when the petitioner has an alternative effective remedy before the competent authority.

Since in the present case, objection under Rule 159(5) of the CGST Rules, 2017 has already been filed, this Court disposes of the present writ petition and application by directing the respondent to decide the objections filed by the petitioner by way of a reasoned order in accordance with law on or before 05th October, 2021. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open. Mr. Harpreet Singh is directed to communicate a copy of this order to the respondents forthwith.