M/S. S.S. Civil Construction Private Limited vs. Asst. Commissioner Of Revenue, State Tax, Ultadanga, Cossipore, Belgachia Charge And Ors.

Held

The Court held that in view of the petitioner's prayer and the submissions made, there was no need to keep the writ petition pending. The Court directed that if the petitioner deposits a sum equivalent to ten percent of the remaining amount of tax in dispute within two weeks from the date of the order, the attachment of its bank account in Punjab National Bank shall be lifted forthwith. This is because, in terms of Section 112(9) of the said Act of 2017, recovery proceedings shall be deemed to have been stayed upon such deposit. The petitioner was granted liberty to prefer an appeal before the Appellate Tribunal once it becomes functional. The Court noted that upon such deposit, the petitioner's apprehension of other bank accounts being attached would cease.

Facts

The petitioner, S. S. Civil Construction Private Limited, assails an appellate order dated March 11, 2025, which dismissed its appeal against an order dated April 25, 2024. Following the dismissal of its appeal, the petitioner's bank account with Punjab National Bank was attached, with directions to pay Rs. 2,76,82,660/- to the Government. The petitioner expressed willingness to deposit ten percent of the disputed tax amount to prefer an appeal before the Appellate Tribunal and sought the lifting of the attachment. The petitioner also feared further attachment of its other bank accounts.

Key Issues

1. Whether the attachment of the petitioner's bank account is justified in light of the petitioner's willingness to deposit ten percent of the disputed tax amount as per Section 112(8) of the said Act of 2017, and whether such deposit would lead to a stay of recovery proceedings for the balance amount under Section 112(9) of the said Act of 2017? Petitioner's arguments: The petitioner argued that upon depositing ten percent of the disputed tax amount, the recovery proceedings for the balance should be stayed, and the attachment of its bank account should be lifted. They relied on Section 112(8) and Section 112(9) of the said Act of 2017. They also expressed apprehension of further attachments. Revenue's arguments: The respondents-GST Authorities submitted that in terms of Section 112(9) of the said Act of 2017, if the amount indicated in Section 112(8) is deposited, recovery proceedings for the balanced amount shall be deemed to be stayed.