Aps Logistics vs. Assistant Commissioner Of CGST - Karnataka High Court, 28 April 2025

Cause title — parties, addresses and appearances

- 1 - NC: 2025:KHC:17449 WP No. 10231 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 10231 OF 2025 (T-RES) BETWEEN: APS LOGISTICS, A PROPRIETORSHIP CONCERN, SHRI MOHAMMED AKRAM, REPRESENTED BY ITS PROPRIETOR, AGED 53 YEARS, SON OF SHRI MOHAMMED ASLAM, HAVING OFFICE AT SAI ADITYA ARCADE, SY. NO. 111, DOOR NO. 3, 2ND FLOOR, ITPL MAIN ROAD, OPP: BROOKFIELD MALL, KUNDALAHALLI, BENGALURU - 560 037. …PETITIONER (BY SRI. PRADYUMNA HEJIB, ADVOCATE) AND: 1. ASSISTANT COMMISSIONER OF CGST AND CENTRAL EXCISE, DIVISION-V, RAIGAD COMMISSIONERATE, PLOT NO. 1, SECTOR 17, KHANDESHWAR, NEW PANVEL - 410 206. 2. THE JOINT COMMISSIONER OF CENTRAL TAX, GST EAST COMMISSIONERATE, 5TH FLOOR, TTMC-BMTC BUILDING, OLD AIRPORT ROAD, DOMLUR, BENGALURU - 560 071. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:17449 WP No. 10231 of 2025 3. INDIAN OVERSEAS BANK, BROOKFIELDS BRANCH, THROUGH ITS BANK MANAGER, BENGALURU - 560 070. 4. COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE, RAIGAD, RAIGAD COMMISSIONERATE, PLOT NO. 1, SECTOR 17, KHANDESHWAR, NEW PANVEL - 410 206. …RESPONDENTS (BY SRI. JEEVAN J. NEERALGI, ADVOCATE FOR R1, R2 AND R4; SRI. KEERTI KUMAR D. NAIK, ADVOCATE FOR R3) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO HOLD THAT THE NOTICE ISSUED BY THE FIRST RESPONDENT UNDER SECTION 87 OF THE FINANCE ACT, 1994, BEARING DIN 2025 0267 VT 00 00 777C38 DATED 19.02.2025 (ANNEXURE-A) IS NOT ENFORCEABLE AGAINST THE PETITIONER AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, the petitioner seeks the following reliefs; NC: 2025:KHC:17449 "a) Hold that the notice issued by the First Respondent under Section 87 of the Finance Act, 1994, bearing DIN 2025 0267 VT 00 00 777C38 dated 19.02.2025 [Annexure - A] is not enforceable against the Petitioner;

(b) Consequently, issue a Writ of Mandamus or any such other appropriate writ directing the Third Respondent to unfreeze/unblock the Petitioner's current account bearing No. 190002000000214, maintained at Indian Overseas Bank, Brookfields Branch, Bengaluru (IFSC Code: IOBA0001900).

(b) Grant such other order or direction as deemed fit in the facts and circumstances of the case in the interest of justice."

A perusal of the material on record would indicate that the petitioner claims to be the Proprietor of APS Logistics, a Proprietary concern, of which he is the sole Proprietor with PAN No.AGZPA9508J and the GST Registration No.29AHZPA9508J1ZO.

It is borne out from the material on record that the petitioner earlier was a partner of the partnership firm by the same name ie., APS Logistics, from which he has NC: 2025:KHC:17449 retired vide retirement cum admission deed dated 01.04.2020, pursuant to which the petitioner was running the business as a sole Proprietor of the Proprietary concern - APS Logistics with the aforesaid PAN number and GST Registration number and the petitioner has an account with respondent No.3 - Bank bearing Account No.190002000000214. 4. It is the grievance of the petitioner that in relation to his Proprietary concern, APS Logistics having the aforesaid PAN number, GST registration number and the Bank account number in respondent No.3 - Bank, the respondents have sought to freeze the bank account of the petitioner for the alleged dues from APS Logistics, partnership firm of which the petitioner is no longer the partner and as such, the impugned notice at Annexure-A dated 19.02.2025 issued under Section 87 of the Finance Act, 1994 freezing / blocking the bank account of the petitioner deserves to be quashed. NC: 2025:KHC:17449

Per contra, learned counsel for respondent Nos.1 and 2 submits that there is no merit in the petition and the same is liable to be dismissed.

So also learned counsel for respondent No.3 - Bank does not dispute that the account of the petitioner in respondent No.3 - Bank belongs to APS Logistics which is a Proprietary concern and not APS Logistics which is a partnership firm from which the petitioner had retired earlier to issuance of the main notice.

The aforesaid facts and circumstances, clearly indicate that respondent Nos.1 and 2 had issued the notice seeking to block the Bank account of APS Logistics bearing PAN No.AAJFA8166C in the name of APS Logistics which is a partnership firm which is not connected or linked to the petitioner with the aforesaid account of the petitioner who is the sole Proprietor of APS Logistics, a Proprietary concern having the aforesaid PAN number, GST registration number and the Bank Account number. NC: 2025:KHC:17449

Under these circumstances, I deem it just and appropriate to dispose of this petition by directing respondent No.3 - Bank to defreeze / unblock the account of the petitioner as requested in the representation at Annexure-H dated 15.03.2025 immediately upon receipt of a copy of this order.

Liberty is however reserved in favour of respondent Nos.1 and 2 to proceed against APS Logistics, partnership firm, in accordance with law.

Subject to the aforesaid directions, petition stands disposed of. (S.R.KRISHNA KUMAR) JUDGE

GH List No.: 1 Sl No.: 11 CT: BHK