O.J Industries Through Proprietor Sh Sachin Dewa vs. Commissioner Of Central Tax GST Delhi
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The petitioner, O.J. Industries, sought a direction to the respondent, Commissioner of Central Tax GST Delhi, to de-freeze its bank account. The petitioner had applied for and was granted cancellation of its GST registration effective from December 31, 2021. However, its bank account was frozen by a letter dated December 27, 2021, prior to the effective date of cancellation. The petitioner contended that there was no basis for freezing the account as it was not conducting business and had voluntarily sought cancellation. The petitioner also argued that the freezing order could not be sustained as over a year had passed since it was issued.
Held
The Court noted the submission by the respondent's counsel that the freezing order dated December 27, 2021, had lapsed and there was no fresh order. Consequently, the respondent stated that the petitioner was free to operate its bank account. In light of this development, the Court found it unnecessary to delve into the other issues raised by the petitioner regarding the justification for the initial freezing of the account. The Court directed the concerned bank, HDFC Limited, to de-freeze the petitioner's savings bank account (No. 05811000003237) and allow its operation. The ratio decidendi is that once a freezing order has lapsed and no subsequent order has been issued, the bank account should be unfrozen, rendering further adjudication on the merits of the initial freezing unnecessary.
Key Issues
1. Whether the freezing of the petitioner's bank account was justified, considering the petitioner had applied for and was granted cancellation of its GST registration? 2. Whether the freezing order dated December 27, 2021, remained valid and enforceable after the lapse of over one year? The petitioner argued that the freezing of its bank account was unjustified as it had ceased business operations and had voluntarily applied for cancellation of its GST registration. It further contended that the freezing order could not be sustained due to the passage of time. The respondent, through its counsel, stated that the freezing order dated December 27, 2021, had lapsed and there was no fresh order in place, implying that the petitioner was free to operate its bank account.
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Cause title — parties, addresses and appearances
O R D E R %
2023 CM APPL. 2308/2023 (for exemption from filing certified copies of annexures)
Exemptions allowed, subject to all just exceptions.
The application stands disposed of. W.P.(C) 591/2023
The petitioner has filed the present petition seeking, inter alia, an appropriate direction to the respondent to de-freeze and allow the operation of the Bank A/c No. 05811000003237 maintained with a branch of HDFC Bank located at A-338, Outer Ring Road, Meera Bagh, Delhi-110087. 4. The petitioner states that it had applied for cancellation of its registration under the GST.
Apparently, the said application was accepted and the petitioner’s GST registration was cancelled, w.e.f. 31.12.2021, by virtue of the letter dated 11.01.2022. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/06/2026 at 20:50:48
Notwithstanding the cancellation, the petitioner’s bank account was frozen by letter dated 27.12.2021. 7. The petitioner contends that there was no ground for the respondent to freeze its bank account since it was not carrying on any business and had voluntarily applied for cancellation of its GST registration.
It is submitted that, in any event, more than one year has elapsed and the order freezing the bank account cannot be sustained.
Mr. Aditya Singla, learned Counsel appearing for the respondent, states on instructions that the freezing order dated 27.12.2021 has now lapsed and there is no fresh order.
He submits that the petitioner is now free to operate its bank account.
In view of the above, this Court does not consider it apposite to examine the other issues raised in the petition as the petitioner’s grievance stands addressed.
The concerned bank (HDFC Limited, A-338, Outer Ring Road, Meera Bagh, Delhi-110087), shall on the strength of this order, de-freeze the savings bank account and allow the operation of the bank account (Savings Bank Account No. 05811000003237 ).
The petition is allowed in the aforesaid terms. VIBHU BAKHRU, J AMIT MAHAJAN, J JANUARY 18, 2023 “SS” This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/06/2026 at 20:50:48
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.