M/S. Zainab Trading vs. The Assistant Commissioner Of Commercial Taxes

Held

The Court noted that the learned Additional Government Advocate for the first respondent placed on record a communication dated October 22, 2020, stating that all garnishee notices in Form DRC-13 have been withdrawn, subject to further proceedings. The Court observed that if the garnishee notices are withdrawn, the writ petition would become infructuous. Consequently, the Court disposed of the petition. The petitioner was granted liberty, subject to all just exceptions, to have proper recourse in the event of any further notices in Form DRC-13. The Court did not decide on the legality or validity of the original notice or attachment, as the matter was rendered infructuous by the withdrawal.

Facts

The petitioner, M/s. Zainab Trading, represented by its proprietor Wasim Ahmed, filed a writ petition before the Karnataka High Court. The petition challenged a notice issued by the Assistant Commissioner of Commercial Taxes (R1) under Section 79(c) of the KGST Act, 2017, in Form GST DRC-13, dated September 12, 2019. The petitioner also challenged a message received from the State Bank of India (R2) dated January 10, 2020, indicating the attachment of the petitioner's bank account. The Assistant Commissioner is the authority that passed the order under challenge. The amount in dispute is not explicitly stated.

Key Issues

1. Whether the garnishee notice issued by the Assistant Commissioner of Commercial Taxes in Form GST DRC-13, dated September 12, 2019, and the subsequent attachment of the petitioner's bank account by the State Bank of India, are valid and legal, particularly in light of the petitioner's challenge under Article 226/227 of the Constitution of India. Contentions: Petitioner: Argued that the garnishee notice and bank account attachment were illegal and sought their quashing. The petitioner relied on the writ petition filed under Articles 226 and 227 of the Constitution of India. Revenue (Respondent No. 1): Did not present arguments on the merits of the case. Instead, placed on record a communication stating that all garnishee notices in Form DRC-13 were withdrawn, subject to further proceedings.