M/S Gajkesari Steel And Alloys PVT LTD Thr Its Authorised Director Ankush Ashok Agrawal vs. The Union Of INDIA And Others

Facts

The petitioner, M/s Gajkesari Steel and Alloys Pvt Ltd, filed a writ petition challenging the orders dated January 6, 2021, issued by Respondent No. 3. These orders provisionally attached the petitioner's bank accounts with Janta Sahakari Bank Ltd., Jalna, under Section 83 of the Central Goods and Services Tax Act, 2017. The amount in dispute is not specified. Following the issuance of notice in the writ petition on March 1, 2021, Respondent No. 3 passed further orders on March 26, 2021, stating that the provisional attachment of the petitioner's bank accounts was no longer necessary. Consequently, the provisional attachment was lifted.

Held

The Court noted that after the writ petition was filed and notice was issued, the respondent authority passed orders on March 26, 2021, withdrawing the provisional attachment of the petitioner's bank accounts. As a result of this development, the grievance of the petitioner no longer survived. The Court did not delve into the merits of the initial attachment order or the arguments presented by either side regarding its legality or validity, as the subsequent action by the respondent rendered the petition infructuous. The principle derived is that if the authority rectifies its action that forms the basis of a writ petition before adjudication, the petition may be disposed of as infructuous.

Key Issues

1. Whether the provisional attachment of the petitioner's bank accounts under Section 83 of the Central Goods and Services Tax Act, 2017, was legally and validly made? The petitioner argued that the attachment was illegal and invalid. The revenue contended that the attachment was warranted. (The judgment does not explicitly detail the arguments of each side beyond the petitioner's challenge and the revenue's action, nor does it name specific provisions or precedents relied upon by the revenue.)