Banamali Kolay And Ors. vs. Deputy Commissioner Of State Tax And Ors.
Original PDF →Facts
The petitioners filed writ petitions challenging garnishee orders issued in September 2022. These orders stemmed from adjudication orders that are appealable under the statute. The petitioners are contractors who worked for the West Bengal State Rural Development Agency, and substantial dues were owed to them. They contended that the GST authorities attached these dues from the agency instead of their bank accounts. The petitioners also highlighted previous writ petitions where orders were passed for payment by the agency, which remained unfulfilled even after contempt proceedings were initiated. The State agency argued that the petitioner failed to comply with the formalities for submitting claims as directed by the writ court in prior matters. The writ petitions were filed with a significant delay of over a year after the issuance of the garnishee orders and after the statutory period for filing appeals against the adjudication orders had expired.
Held
The Court held that it was not inclined to grant relief directly through the writ petitions due to the availability of statutory appeal remedies against the adjudication orders from which the garnishee orders arose. The Court also noted the inordinate delay of over a year in filing the writ petitions, well beyond the statutory period for filing appeals. Despite this, the Court, considering the exceptional facts and circumstances, granted the petitioner liberty to file appeals against the original adjudication orders. This liberty was conditioned upon the petitioner making a pre-deposit in each appeal and paying a cost of Rs. 1 lakh in each appeal to the WBGST authority for the delay. The appeals were to be filed within two weeks of complying with these formalities. Upon fulfillment of these conditions, the appellate authority was directed to entertain the appeals, decide them on merit, and stay the impugned garnishee orders until the disposal of the appeals. The Court explicitly clarified that the delay was considered due to exceptional circumstances.
Key Issues
1. Whether the High Court should entertain writ petitions challenging garnishee orders that arise from appealable adjudication orders, especially when there is an inordinate delay in filing the petitions? Petitioner's contention: The petitioners argued that the garnishee orders were improperly issued, attaching dues owed to them by a government agency instead of their bank accounts. They relied on previous court orders directing payment from the agency, which had not been honored. They sought relief from the High Court to address this situation. Revenue/State's contention: The State agency argued that the petitioner had not complied with the procedural requirements for claiming dues as directed by previous writ court orders. The judgment does not record specific arguments from the GST authorities regarding the garnishee orders themselves, beyond the fact that they arise from adjudication orders.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
WPA 28541 OF 2023 13.02.2024
+ Sl no. 7-9
WPA 28548 OF 2023 Ct no. 2
+ P.M.
WPA 28554 OF 2023
Banamali Kolay & Ors
+ The Deputy Commissioner of State Tax, Serampore Charge & Ors.
Md. J. Khan, Mr. T. A. Khan Mr. Bhaskar Sengupta,
… for the petitioners Mr. Anirban Ray, Ld. Govt. Pleader Md. T. M. Siddiqui, Mr. T. Chakraborty, Mr. S. Sanyal
… for the State
Mr. Om Narayan Rai,
Mr. Guddu Singh
.... for Union of India in WPA 28541 of 2023
Mr. Ranjan Kumar Sinha,
Ms. Smita Das De
.... for respondent No. 8 in WPA 28548 of 2023
Mr. Vipul Kundalia,
Mr. Soumen Bhattacharjee
... for Union of India in WPA 28554 of 2023
Heard learned advocates appearing for the parties. Petitioner has filed this writ petition against the impugned garnishee order passed in September, 2022 by filing these writ petitions, though the aforesaid impugned garnishee order arises out of the adjudication orders which are appellable under the statute. There is a long delay of about more than a year in filing these writ petitions and time to file appeals
2 against the adjudication orders have also expired long back. It is the case of the petitioner that petitioner is a contractor who worked for West Bengal State Rural Development Agency and huge amount of dues are against the said authority and respondent GST authority may have attached those dues against the aforesaid authority instead of bank account of the petitioner. It is further case of the petitioner that against the said Government agency other writ petitions were filed and order has been passed for making payment to the petitioner and in spite of such order no payment has been made even after initiating contempt proceeding against the said agency. Learned advocate representing the said State agency submits that petitioner has not complied the formalities of submitting the claim against the said agency in proper forum as directed by the writ court in those matters. Without going into all these disputes, in view of the fact that the impugned orders of garnishee arise out of the adjudication orders which are appellable under the statute, I am not inclined to grant any relief to the petitioner except granting liberty to the
3 petitioner to file appeals against the impugned orders in original /adjudication order in accordance with law by making pre-deposit in each appeal on condition that petitioner shall pay a cost of Rs. 1 lakh in each appeal for inordinate delay in approaching this writ court and by making a long delay after the statutory period of filing the appeal.
The appeal should be filed by the petitioner within two weeks from date of complying the statutory formalities as well as by making payment of cost of the WBGST authority concerned within the time stipulated herein . If such conditions indicated in these writ petitions are fulfilled by the petitioner within the time stipulated herein, appeals of the petitioner will be entertained by the appellate authority and shall be decided on merit and impugned orders of garnishee will be stayed till the disposal of the appeals to be filed. It is clarified that the delay in this case has been considered in view of exceptional facts and circumstances involved. With this observations and directions these writ petitions being WPA 28541 of 2023, WPA 28548 of 2023 and WPA 28554 of 2023 stand disposed of.
4
(Md. Nizamuddin, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.