2025 (5) TMI 1255 - HC - GST

Rejection of appeal u/s 107 of the CGST/WBGST Act 2017 - attachment of the petitioner s bank account - H ELD THAT - Noting the fact that no personal hearing was offered to the petitioner as reflected in the show cause notice dated 12th September 2023 though in the order dated 5th March 2024 it has been stated that the Registered Tax Payer had failed to give any reply or avail the opportunity of personal hearing and that the appeal has been dismissed on the ground of limitation without there being adjudication on merit having regard to the scheme of the Act which permits the registered tax payer a further opportunity to challenge the adjudication order and since the appellate tribunal is yet to be constituted the matter should be remanded back to the appellate authority for its adjudication on merits. Further taking note of the fact that an amount of Rs. 1, 10, 757/- has been paid by the petitioner towards pre- deposit and in addition thereto Rs. 18, 79, 96/- has already been recovered from the petitioner and considering the scheme of the said Act which authorizes a RTP to maintain an appeal upon payment of 10 per cent of the amount of tax in dispute the order of attachment of the petitioner s bank account which has been effected vide order issued in form GST DRC 13 dated 19th September 2024 cannot be sustained and the same is accordingly set aside. Petition disposed off.

Summary

The Calcutta High Court, through Hon'ble Raja Basu Chowdhury, J., disposed of a writ petition challenging the order dated 3rd January 2025, which rejected an appeal under Section 107 of the CGST/WBGST Act, 2017 for the tax period April 2018 to March 2019, and questioned the attachment of the petitioner's bank account.Key holdings include:- The Court noted that no personal hearing was afforded to the petitioner before dismissal of the appeal on the ground of limitation without adjudication on merits, despite the show cause notice dated 12th September 2023.- Recognizing the scheme of the Act allowing the registered taxpayer a further opportunity to challenge adjudication, and since the appellate tribunal is yet to be constituted, the Court "remand[ed] the matter back to the appellate authority for its adjudication on merits."- The Court emphasized that the appellate authority is better positioned to examine electronic records available on the portal, rather than the High Court undertaking such review.- Regarding the attachment of the petitioner's bank account under GST DRC-13 dated 19th September 2024, the Court held that since the petitioner had paid Rs. 1,10,757/- as pre-deposit and Rs. 18,79,96/- had already been recovered, and considering the statutory requirement of payment of 10% of the disputed tax amount to maintain appeal, "the order of attachment... cannot be sustained" and was set aside.Thus, the Court set aside the impugned order and the attachment, remanding the matter for adjudication on merits by the appellate authority, and disposed of the writ petition accordingly.