2025 (6) TMI 352 - HC - GST

Maintainability of petition - availability of alternative remedy - Seeking quashing of the impugned order - H ELD THAT - Although there is an appellate remedy available to the Petitioner considering that his bank accounts are frozen by the Respondent causing considerable hardship to the Petitioner we deem it appropriate to entertain the Petition at this stage. An intimation of the said deposit shall be given to the Respondent immediately. On deposit of the said amount the impugned order dated 28th February 2025 shall be stayed till 16th June 2025. List the Petition on 16th June 2025.

Summary

The Bombay High Court granted leave to amend the petition to add an additional prayer and details regarding eight frozen bank accounts. The Petitioner seeks quashing of the impugned order dated 28th February 2025 passed by the Respondent, which is prejudicial to him, and also seeks defreezing of the specified bank accounts.The Court noted Section 107(6) and (7) of the Central Goods and Services Tax Act, 2017, which requires payment of "in full, such part of the amount of tax... as is admitted" and "a sum equal to ten per cent. of the remaining amount of tax in dispute" before filing an appeal, and that "recovery proceedings for the balance amount shall be deemed to be stayed" upon such payment.Although an appellate remedy exists, considering the hardship caused by the freezing of bank accounts, the Court entertained the petition. The Petitioner undertook to deposit 10% of the disputed tax demand from the Electronic Credit Ledger on the same day. Upon such deposit and intimation to the Respondent, the impugned order is stayed until 16th June 2025.Consequently, the attachment of the eight specified bank accounts is ordered to be defreezed, with banks to be notified accordingly. The petition is listed for further hearing on 16th June 2025.