Baldev Krishan Gupta And Co. vs. State Of Punjab And Others

Held

The Court held that the provisional attachment of all the petitioner's bank accounts should be lifted. The reasoning was based on the petitioner's undertaking to maintain the balance that was present in the accounts on the date of the provisional attachment order. The Court found merit in the petitioner's submission that defreezing the accounts was necessary for the continuation of their business. The operative direction was that all accounts of the petitioner be defrozen, and the petitioner must maintain the amount that was present in the accounts on the date of the provisional attachment. The Court did not expressly leave any issue undecided.

Facts

The petitioner, Baldev Krishan Gupta & Co. (HUF), sought a writ of certiorari to quash orders dated June 28, 2019, and July 29, 2019. These orders, passed by respondent No. 2, confirmed the provisional attachment of the petitioner's bank accounts and property under Section 83 of the Punjab Goods and Service Tax Act and Central Goods and Service Tax Act, 2017. The petitioner has seven bank accounts, including one CC account and one saving account, and five current accounts. The petitioner's proprietor argued that all accounts should be defreezed to allow business operations, with an undertaking to maintain the balance present on the date of the provisional attachment order in the other accounts. It was noted that the CC account had been overdrawn beyond its limit.

Key Issues

1. Whether the provisional attachment of all seven bank accounts of the petitioner under Section 83 of the PGST/CGST Act was justified, considering the petitioner's business needs and undertaking to maintain balances. Petitioner's Contention: The petitioner argued that all seven bank accounts should be defreezed to enable the continuation of their business. They further undertook to maintain the balance that was present in the accounts as of the date of the provisional attachment order. The petitioner also highlighted that their CC account had been overdrawn beyond its limit, implying a need for its operation. Respondents' Contention: The learned Additional Advocate General for the State of Punjab was not in a position to deny the logic of the petitioner's prayer.