Krishna Traders vs. State Of Punjab And Others

Facts

The petitioner, M/s. Krishna Traders, filed a writ petition before the Punjab and Haryana High Court. Their grievance was that despite depositing the mandatory pre-deposit amount under Section 107 of the Central Goods and Services Tax Act, 2017, to file an appeal, the respondent authorities had not de-frozen their bank account, which had been provisionally attached. The respondent authorities, represented by the learned State counsel, did not dispute the petitioner's factual assertions and assured the Court that the petitioner's account would be de-freezed within a week.

Held

The Court held that the respondent authorities were obligated to de-freeze the petitioner's bank account. The reasoning was based on the petitioner's compliance with the pre-deposit requirement under Section 107 of the Central Goods and Services Tax Act, 2017, for filing an appeal. The State counsel's admission that the account would be de-freezed within a week further supported this. The ratio decidendi is that statutory compliance with pre-deposit provisions for appeals necessitates the unfreezing of attached bank accounts. The Court directed the respondents to ensure the petitioner's bank account is de-freezed within one week from the date of the order.

Key Issues

1. Whether the respondent authorities are obligated to de-freeze the bank account of the petitioner once the requisite pre-deposit amount for filing an appeal under Section 107 of the Central Goods and Services Tax Act, 2017, has been deposited? (Question of law) Petitioner's contention: The petitioner argued that upon fulfilling the pre-deposit requirement for filing an appeal, the provisional attachment of their bank account should be lifted. They relied on the principle that compliance with statutory pre-deposit conditions should lead to the restoration of normal financial operations. Revenue/State's contention: The respondent authorities, while not disputing the facts, stated that they would de-freeze the account within a week, implying an acknowledgment of the obligation to do so upon compliance.