Bombay High Court
Subright Designers Pvt. Ltd vs State Of Maharashtra Thr Pp Office And ... on 7 December, 2023
Author: G. S. Kulkarni
Bench: G. S. Kulkarni
2023:BHC-AS:36753-DB
904-wp 13967-23.odt
Prajakta Vartak
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 13967 OF 2023
Sunbright Designers Pvt. Ltd. ..Petitioner
Versus
State of Maharashtra & Ors. ..Respondents
__________
Mr. Brijesh Pathak for Petitioner.
Ms. Shruti Vyas, Addl. GP with Ms. P. N. Diwan, AGP for State.
__________
CORAM : G. S. KULKARNI &
JITENDRA JAIN, JJ.
DATE : DECEMBER 07, 2023.
P.C.:
1. This petition under Article 226 of the Constitution of India is filed
praying for the following substantial reliefs:-
"(a) that this Hon'ble court may be pleased to issue writ in the
nature of certiorari or any other appropriate writ or order thereby
quashing the provisional attachment of the Bank Account:
50200006372609, vide Order bearing Ref. No. JC-INV-C/2023-24/
DRC-22/B-81 Mumbai dated 27.06.2023, Exhibit G passed by the
Respondent No.2;
(b) that this Hon'ble Court may be pleased to issue a Writ of
Mandamus or a Writ in the nature of Certiorari or any other
appropriate writ or order thereby directing the 2 nd Respondent to
withdraw Order bearing Ref. No. JC-INV-C/2023-24/DRC-22/B-81
Mumbai dated 27.06.2023, Exhibit G, consequently restore operation
in the Bank Account 50200006372609, held with 4 th Respondent;
(c) that this Hon'ble Court may be pleased to issue a writ, order or
direction in the nature of mandamus or any other appropriate writ
thereby declaring that the impugned Show Cause Notice bearing F.
No. AC-INV-D-048/ Sunbright/SCN/2022-23/B-127 Mumbai dated
28.03.2023, Exhibit I and consequent Order No.
AC/INV-D-048/MUM/Sunbright/2023-24/B-258 Mumbai dated
15.09.2023, Exhibit K passed by the 3 rd Respondent, is without
-------------------------
07 December, 2023
904-wp 13967-23.odt
jurisdiction and hence be pleased to quash and/or set-aside the same."
2. The primary grievance of the petitioner is in regard to the
provisional attachment of the petitioner's bank account by the respondents
in exercise of powers conferred under Section 83 of the CGST/MGST Act.
The proceedings have some history. As argued by Mr. Pathak, learned
counsel for the petitioner, the petitioner is engaged in the business of
manufacturing apparels.
3. On 30 March, 2022 the respondent had issued a Summons under
Section 70 of the Maharashtra Goods and Services Tax Act, 2017 (for
short, "MGST Act") to the petitioner's bank namely respondent no.4
directing the bank to furnish certain records and documents. As also the
petitioner's bank was directed not to allow operation of the bank account
of the petitioner. The petitioner at such time, approached the Court by
filing Writ Petition No. 4624 of 2022. On 21April, 2022, such notice/
summons issued under Section 70 to the bank was withdrawn.
4. Thereafter on 21 April, 2022, the 2nd respondent in exercise of
powers under Section 83 of the MGST Act, attached the bank account of
the petitioner. The petitioner had again approached this Court in the
proceedings of Writ Petition No. 7070 of 2022 challenging the
-------------------------
07 December, 2023
904-wp 13967-23.odt
jurisdiction of the 2nd respondent to attach the petitioner's bank account.
By an order dated 07 January, 2023 passed by this Court, the said writ
petition filed by the petitioner was disposed of, with a direction that the
petitioner would make an application/file its objection in terms of Rule
159(5) of the MGST Rules. On 13 January, 2023, the petitioner filed
objections before the 2nd respondent under Rule 159(5) of the MGST
Rules. These objections came to be rejected by the Department on 23
February, 2023. The petitioner, in these circumstances, again approached
this Court in the proceedings of Writ Petition No. 3905 of 2023. This
Court by a judgment and order dated 30 June, 2023 disposed of the said
writ petition inter-alia upholding that the communication dated 21 April,
2022 provisionally attaching the petitioner's bank account, was rendered
illegal and invalid by virtue of the provisions of Section 83(2) of the
CGST Act. It was also held that the extension of the provisional
attachment by communication dated 19 April, 2023 was also illegal and
accordingly the same was quashed and set aside.
5. However, before this Court could adjudicate Writ Petition No.
3905 of 2023, on 28 March, 2023 the petitioner was issued with a show
cause notice as per the provisions of Section 122(1A) of the MGST Act.
The show cause notice came to be decided by the adjudicating officer by
-------------------------
07 December, 2023
904-wp 13967-23.odt
an order-in-original dated 15 September, 2023. However, in the
meantime, the respondent had issued the impugned order dated 27 June,
2023 thereby provisionally attaching the bank account of the petitioner
under Section 83 of the MGST Act. It is on such backdrop, the petitioner
is before this Court contending that the respondent would not have
jurisdiction to pass a fresh order provisionally attaching the bank account
of the petitioner when the earlier orders were quashed and set aside.
6. We have heard Mr. Pathak on the contentions as urged on behalf of
the petitioner as also Ms. Vyas, learned Addl. GP for the State.
7. In the peculiar facts and circumstances of the case, we are of the
opinion that now as an order has been passed by the adjudicating officer
deciding the show cause notices and as the petitioner is now desirous to
assail the said order-in-original by adopting the appropriate remedy as
available in law, it would be appropriate for the petitioner to proceed with
such course of action of filing of an appeal to assail the order-in-original.
Mr. Pathak states that such appeal would be filed within a period of four
weeks from today.
8. In so far as the petitioner's bank account is concerned, it would be
open for the petitioner to make an application before the appellate
-------------------------
07 December, 2023
904-wp 13967-23.odt
authority praying for appropriate orders in regard to the revoking of the
provisional attachment, contending that the impugned order dated 27
June, 2023 provisionally attaching the petitioner's bank account is illegal.
If such an application is made, the same be decided as expeditiously as
possible and preferably within a period of three weeks from the date of
filing of the said application.
9. All contentions of the parties on the appeal as also interim
application as may be filed by the petitioner are expressly kept open.
10. Subject to the information as being supplied to the Department in
regard to the balance which is available in the bank account as
provisionally attached and as may be permitted by the Designated Officer,
the petitioner be permitted by the Designated Officer to operate the bank
account to withdraw the amount which the petitioner would be required
to deposit for the purpose of filing of an appeal.
11. We, however, clarify that the Designated Officer permitting the
petitioner to operate the bank account to withdraw the limited amounts
for the purpose of pre-deposit, in no manner would amount to revoking or
altering the orders of provisional attachment.
-------------------------
07 December, 2023
904-wp 13967-23.odt
12. Ordered accordingly.
13. The petition stands disposed of in the above terms. No costs.
[JITENDRA JAIN, J.] [G. S. KULKARNI, J.]
-------------------------
07 December, 2023
