M/S Haryana Steel Mongers PVT. LTD. vs. Union Of INDIA And Another
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The petitioner, M/s Haryana Steel Mongers Pvt. Ltd., filed a writ petition seeking to quash an order dated 30.08.2022 and another order dated 24.05.2022. The petitioner also sought directions to release its bank accounts that were provisionally attached and to refund an amount of Rs. 30,00,000/-. The impugned orders were passed by the revenue authorities. The revenue counsel submitted that the order of provisional attachment is no longer in force and that the department is in the process of de-attaching the bank accounts. The petitioner acknowledged this development and stated that the writ petition had become infructuous regarding the de-attachment of bank accounts. However, the petitioner did not press the prayer for refund of Rs. 30,00,000/- at that stage.
Held
The Court noted the submission by the learned counsel for the respondents that the order of provisional attachment was no longer in force and that the department was in the process of de-attaching the bank accounts. The petitioner's counsel acknowledged this and stated that the matter had become infructuous concerning the de-attachment of bank accounts. The petitioner did not press the prayer for the refund of Rs. 30,00,000/- at this stage but sought liberty to challenge subsequent proceedings. Consequently, the Court directed that the necessary action for the de-attachment of bank accounts, as proposed, be taken forth-with by the respondents. The writ petition was disposed of with the liberty granted to the petitioner to challenge subsequent proceedings. The issue regarding the refund of Rs. 30,00,000/- was not decided as it was not pressed by the petitioner.
Key Issues
1. Whether the writ petition has become infructuous in light of the respondents' submission that the provisional attachment of bank accounts is no longer in force and the department is in the process of de-attaching them, as per Section 83 of the CGST Act, 2017? Petitioner's contention: The petitioner acknowledged that the issue concerning the de-attachment of bank accounts had been rendered infructuous. They did not press the prayer for the refund of Rs. 30,00,000/- at this stage but sought liberty to challenge subsequent proceedings. The petitioner relied on the communication received by the respondents' counsel regarding the de-attachment. Revenue's contention: The respondents, through their counsel, submitted that the order of provisional attachment is not in force and referred to a communication confirming the de-attachment process. They argued that the writ petition was thus rendered infructuous.
Sections Cited
Section 83
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Cause title — parties, addresses and appearances
authenticity of this order/judgment PHHC, CHD
CWP No.26097 of 2022
-2-
attached under Section 83 of CGST Act, 2017. For your information please. Regards//”
It is submitted that this writ-petition is, thus, rendered infructuous in view of the above.
Learned counsel for petitioner submits that in case, necessary action is taken immediately in respect to de-attachment of bank account(s), the matter would, indeed, be rendered infructuous and petitioner does not press the prayer in respect to refund of amount of Rs.30,00,000/-, at this stage, though liberty be afforded to challenge subsequent proceedings which have culminated in issuance of order in original dated 28.01.2025. 5. Keeping in view the facts and circumstances as above, it is directed that necessary action in respect to de-attachment of bank accounts, as has been proposed, be taken forth-with by respondents.
Writ-petition is disposed of accordingly, with liberty as aforesaid to petitioner.
(LISA GILL)
JUDGE
2025
(MEENAKSHI I. MEHTA) neetu
JUDGE
Whether speaking/reasoned: Yes/No
Whether Reportable: Yes/No NEETU RANI 2025.07.31 17:04 I attest to the accuracy and authenticity of this order/judgment PHHC, CHD
Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.