Vivek Narsaria vs. The State Of Jharkhand

Held

The Court noted the statement in the affidavit that a letter for de-freezing the petitioner's bank account was issued on April 24, 2024. Consequently, the Court held that the present contempt case was closed. However, to protect the interest of the revenue, the Court left it open for the opposite parties to take action in accordance with the law. This includes the possibility of freezing the tentative amount of tax liability of the petitioner, but not their bank account. The Court did not make a definitive finding on the alleged contravention of Section 16(2) of the CGST Act, 2017, or the validity of the ITC claimed, as the primary focus was on the contempt aspect and the de-freezing of the bank account.

Facts

The petitioner, Vivek Narsaria, filed a contempt case (Civil) No. 158 of 2024 before the Jharkhand High Court. The case concerned the alleged non-compliance with a previous court order. The Senior Intelligence Officer, Directorate General of Goods & Services Tax Intelligence (DGGI), submitted an affidavit stating that letters for de-freezing the petitioner's bank accounts were issued on April 24, 2024, and communicated to the petitioner. The DGGI also requested the court to direct the petitioner to furnish bank guarantees equivalent to the approximate tax liabilities of Rs. 14 Crore, which were prima facie detected due to wrongly availed Input Tax Credit (ITC) in contravention of Section 16(2) of the CGST Act, 2017, based on invoices from fake GSTINs.

Key Issues

1. Whether the Opposite Parties have complied with the previous order of this Court directing the de-freezing of the petitioner's bank accounts, thereby rendering the contempt petition infructuous? (Question of fact) Contentions: Petitioner: The petitioner initiated the contempt proceedings alleging non-compliance with a prior court order. The subsequent filing of an affidavit by the DGGI indicating the de-freezing of bank accounts suggests compliance. Opposite Parties (Revenue): The Senior Intelligence Officer, DGGI, submitted an affidavit stating that letters for de-freezing the petitioner's bank accounts were issued on April 24, 2024. They also sought a direction for the petitioner to furnish bank guarantees for the alleged tax liability of Rs. 14 Crore, citing contravention of Section 16(2) of the CGST Act, 2017, for wrongly availed ITC on invoices from fake GSTINs.