M/S. J K Enterprises vs. The Union Of INDIA

Facts

The petitioner, M/s. J K Enterprises, represented by its Proprietor, Sri Dasam Govardhan Goud, filed a writ petition before the Telangana High Court. The petition challenged a garnishee notice dated January 11, 2025, issued by the Assistant Commissioner of Central Tax (Respondent No. 3) to the petitioner's banker (Respondent No. 6). The petitioner sought a writ of mandamus to declare this notice illegal, arbitrary, unjust, and ultra vires, infringing their fundamental rights and being contrary to statutory provisions. An interlocutory application was also filed seeking suspension of the garnishee notice's operation. The respondents included the Union of India, the Commissioner of Central Tax, the Assistant Commissioner of Central Tax, and other GST authorities.

Held

The Court was approached by the petitioner seeking permission to withdraw the writ petition with liberty to file a fresh petition. The learned counsel for the petitioner made this request. The respondents did not object to this request. Consequently, the Court dismissed the writ petition as withdrawn, granting the petitioner the liberty to file a fresh petition. No costs were awarded. Any pending interlocutory applications were also closed.

Key Issues

1. Whether the garnishee notice dated January 11, 2025, issued by the Assistant Commissioner of Central Tax to the petitioner's banker, invoking Section 87(b)(iii) of the Finance Act, is illegal, arbitrary, unjust, and ultra vires, infringing the petitioner's fundamental rights and being contrary to statutory provisions? The petitioner argued that the notice was illegal, arbitrary, unjust, and an infringement of their fundamental rights, and contrary to statutory provisions. The respondents' contentions were not recorded in the judgment.