M/S Vaidhee Stainless Steel vs. Union Of INDIA & Ors.
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The petitioner, M/s Vaidhee Stainless Steel, filed a contempt petition (CONT.CAS(C) 1277/2024) seeking to initiate contempt proceedings against the respondents for alleged wilful disobedience of this Court's order dated 21.11.2023 in WP(C) No.12042/2023. The petitioner stated that the first relief granted by the Court, regarding the revocation of GST registration, had been satisfied. However, the second relief, concerning the de-freezing of bank accounts as specified in paragraph 7 of the previous order, had not been acted upon by the respondents. The respondents requested time to file a reply. The Court noted that the respondents had conceded in the previous writ petition that the orders attaching the bank accounts were no longer operative due to Section 83(2) of the CGST Act.
Held
The Court held that the respondents had failed to comply with the directions of the Court regarding the de-freezing of the petitioner's bank accounts. It was noted that the respondents themselves had conceded in the previous writ petition that the orders attaching the bank accounts were no longer operative by virtue of Section 83(2) of the CGST Act. Consequently, the Court directed that the HDFC bank accounts of the petitioner, as reflected in the order dated 21.11.2023 in WP(C) No.12042/2023, shall stand de-frozen forthwith. The contempt petition was disposed of on this basis, finding that the non-compliance warranted immediate action to rectify the situation rather than proceeding with contempt proceedings. No issue was expressly left undecided.
Key Issues
1. Whether the respondents have wilfully disobeyed the directions of this Court contained in the order dated 21.11.2023 in WP(C) No.12042/2023, specifically concerning the de-freezing of the petitioner's bank accounts, thereby constituting contempt of court? Petitioner's Contention: The petitioner argued that while the GST registration issue was resolved, the respondents had failed to de-freeze the bank accounts as directed by the Court. They contended that the attachment orders were no longer operative under Section 83(2) of the CGST Act, and the continued freezing amounted to wilful disobedience. Respondent's Contention: The respondents sought time to file a reply to the contempt petition.
Sections Cited
Section 83(2)
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Cause title — parties, addresses and appearances
O R D E R %
2024
CM APPL. 47034/2024 – EXMP.
Allowed, subject to all just exceptions.
The application stands disposed of. CONT.CAS(C) 1277/2024
The petitioner is seeking initiation of contempt proceedings against the respondents for wilful disobedience of the directions of this Court contained in the order dated 21.11.2023 in WP(C) No.12042/2023. 4. Learned counsel for the respondents is present on advance notice and requests two weeks‟ time to file a reply.
Learned counsel for the petitioner submits that insofar as the 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 21/08/2024 at 15:10:55
first relief as regards revocation of GST registration is concerned, such relief stands satisfied. However, with regard to the second relief which was granted by this Court, pertaining to de-freezing of the bank accounts that are reflected in para 7 of the directions passed by this Court, it appears that no such directions have been issued by the respondents to facilitate the de-freezing of the said accounts.
A bare perusal of the aforesaid order would show that it was conceded on behalf of respondents No.2 and 3 that the impugned order dated 04.08.2022 followed by order dated 24.08.2022 whereby the aforesaid bank accounts have been directed to be attached, are no longer operative by virtue of Section 83(2) of the CGST Act. That being the case, it is directed that the said HDFC bank accounts of the petitioner, as reflected in the order dated 21.11.2023 in WP(C) No.12042/2023, shall stand de-frozen forthwith.
The preset petition is disposed of accordingly.
Copy of this order be given to the learned counsel for the petitioner under signature of the Court Master.
DHARMESH SHARMA, J. AUGUST 16, 2024/VLD 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 21/08/2024 at 15:10:55
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