M/S Kotdwar Steel Limited ( Through Its Director Rahis Malik) vs. Directorate General Of GST Intelligence (Through Its Additional Director Genral) & Anr.

Facts

The petitioner, M/s Kotdwar Steel Limited, challenged an order dated February 14, 2024, passed by the Directorate General of GST Intelligence (DGGI), through its Principal Additional Director General, which had attached the petitioner's cash credit account in Canara Bank. The petitioner filed a writ petition before the Delhi High Court. Subsequent to the filing of the petition, the DGGI issued a communication dated April 8, 2024, informing that the attachment of the bank account had been vacated. A copy of this communication was produced before the Court and taken on record.

Held

The Court noted that subsequent to the filing of the writ petition, the Principal Additional Director General of GST Intelligence had issued a communication dated April 8, 2024, vacating the attachment of the petitioner's bank account and intimating the concerned bank. In light of this development, the Court found that the grievance raised by the petitioner had been addressed. Therefore, the Court disposed of the petition by directing Canara Bank to comply with the directions issued by the Principal Additional Director General in the communication dated April 8, 2024. The Court did not delve into the merits of the original attachment order, as the issue had become infructuous due to the subsequent vacating of the attachment.

Key Issues

1. Whether the attachment of the petitioner's cash credit account was justified, and if so, whether it has been validly vacated. The petitioner's primary contention, as indicated by the filing of the petition, was to challenge the attachment order. The revenue's argument is implicitly that the attachment was made under the relevant provisions of the GST law, and the subsequent vacating of the attachment resolves the grievance. The Court had to determine if the vacating of the attachment rendered the petition infructuous. The relevant provision under which attachment orders are typically made is Section 83 of the Central Goods and Services Tax Act, 2017, which allows for provisional attachment to protect revenue.