M/S Sant Steel And Alloys Private Limited(Through Its Director Arshad Ali) vs. Directorate General Of Goods And Services Tax Intelligance (Through Its Additional Director General

Facts

The petitioner, M/s Sant Steel and Alloys Private Limited, filed a writ petition before the Delhi High Court challenging an order dated 09.02.2024. This order had resulted in the attachment of the petitioner's cash credit account in Canara Bank. The respondents were the Directorate General of Goods and Services Tax Intelligence and another entity. Subsequent to the filing of the petition, the petitioner received a communication dated 08.04.2024, indicating that the attachment of the bank account had been vacated. A copy of this communication was produced before the Court.

Held

The Court noted that subsequent to the filing of the petition, the attachment of the petitioner's bank account had been vacated by a communication dated 08.04.2024, issued by the Principal Additional Director General. A copy of this communication was placed on record. In light of this development, the Court disposed of the petition. The operative direction was for Canara Bank to comply with the directions issued in the communication dated 08.04.2024, which effectively meant unfreezing the petitioner's bank account. The Court did not delve into the merits of the original attachment order as it had become infructuous.

Key Issues

1. Whether the attachment of the petitioner's bank account was valid and justified under the relevant provisions of the GST law? (This issue is framed as a question of law, implicitly turning on the powers of the revenue authorities to attach bank accounts). The petitioner argued that the attachment was wrongful and sought its removal. The respondents' arguments are not explicitly recorded in the judgment, but their participation implies a defense of the attachment order. The primary issue before the court became moot due to subsequent developments.