Kgn Enterprises vs. Principal Additional Director General Directorate General Of Goods And Service Tax Intelligence &
Original PDF →Facts
The petitioner, KGN Enterprises, filed an application seeking the removal of a provisional attachment on its savings bank account. This attachment was a consequence of a prior order by the Court on March 7, 2025, which had directed the unblocking of the petitioner's Electronic Credit Ledger (ECL). The petitioner's grievance was that despite the Court's earlier order, the provisional attachment on its bank account had not been withdrawn. The respondent, represented by the Directorate General of GST Intelligence (DGGI), submitted a letter dated November 6, 2025, from DGGI Gurugram, indicating that there was no longer a requirement for the attachment.
Held
The Court noted that a prior order dated March 7, 2025, had already held that the negative blocking of the Petitioner's Electronic Credit Ledger (ECL) was impermissible and directed its unblocking. The Court observed that the automatic consequence of unblocking the ECL should have been the withdrawal of the provisional attachment on the Petitioner's bank account. The Respondent, through the Directorate General of GST Intelligence (DGGI), submitted a letter dated November 6, 2025, confirming that there was no longer a requirement for the attachment. In light of this submission and the prior order, the Court directed Kotak Mahindra Bank to permit the operation of the Petitioner's bank account without any conditions. The Court further stated that upon presentation of its order, the bank account would be automatically permitted to be operated without further communication from the CGST or DGGI Departments. The application was disposed of on these terms.
Key Issues
1. Whether the provisional attachment of the Petitioner's bank account should be removed, considering the prior order of this Court dated March 7, 2025, directing the unblocking of the Petitioner's Electronic Credit Ledger (ECL)? The Petitioner argued that the provisional attachment of its bank account was an automatic consequence of the Court's earlier order to unblock its ECL and that its continued existence constituted a grievance. The Petitioner relied on the Court's previous order. The Respondent, through the DGGI, submitted a letter dated November 6, 2025, stating that the attachment was no longer required, implying that the issue was being addressed by the revenue authorities.
Sections Cited
Section 151
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 01.12.2025
This hearing has been done through hybrid mode. CM APPL. 68662/2025
The present application has been filed by the Petitioner- KGN Enterprises under Section 151 of the Code of Civil procedure, 1908, seeking removal of the provisional attachment on Petitioner’s savings bank account, bearing Account No. 0811511283 with Kotak Mahindra Bank, Arya Samaj Mandir Road, Karol Bagh, New Delhi.
Vide order dated 07th March, 2025, this Court has already held that the negative blocking of the Electronic Credit Ledger (hereinafter, ‘ECL’) of the Petitioner is not permissible and, accordingly, unblocking of the ECL was directed. The automatic consequence was that provisional attachment of the Petitioner’s bank account was also to be withdrawn.
The grievance of the Petitioner is that the provisional attachment of Petitioner’s bank account has not been removed till date. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/12/2025 at 12:12:10 5. Ms. Monica Benjamin, ld. SSC for the Respondent has handed over a letter dated 06th November, 2025 of the Directorate General of GST Intelligence, (hereinafter, ‘DGGI’) Gurugram. The same is taken on record.
It is submitted by ld. SSC for the Respondent that DGGI Gurugram, has already written a letter dated 06th November, 2025, informing the bank that there was no requirement of attachment. The said letter is extracted below:
In view of the above letter, the Kotak Mahindra Bank was directed to This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/12/2025 at 12:12:10 permit operation of Petitioner’s bank account with no conditions, whatsoever.
Thus, upon presentation of this order, the Petitioner’s bank account shall be automatically permitted to be operated with no further communication being required from either the CGST or the DGGI Departments.
Accordingly, the application stands disposed of in these terms.
The General Manager of the Bank shall give effect to this order. PRATHIBA M. SINGH, J. RENU BHATNAGAR, J. DECEMBER 1, 2025/pd/sm This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/12/2025 at 12:12:10
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.