2025 (6) TMI 1337 - HC - GST

Challenge to freezing of the bank accounts of the Petitioner - grievance of the Petitioner is that two more accounts have been opened on the same PAN number and in view of the communication dated 16th June 2024 even the said bank accounts have also been frozen by the Bank - HELD THAT - In view of the fact that the appeal in respect of the impugned Order-in- Original has already been filed in terms of Section 107 of Central Goods and Services Tax Act 2017 the final order dated 28th January 2025 is automatically stayed. Therefore Kotak Mahindra Bank is directed to de-freeze all three accounts with immediate effect. The Department shall also issue a communication to the Kotak Mahindra Bank calling upon them to lift the debit freeze. Petition disposed off.

Summary

The Delhi High Court, in a petition under Articles 226 and 227 of the Constitution of India filed by M/s Unity Traders, addressed the freezing of the Petitioner's bank accounts pursuant to a communication dated 16th June 2024 by the Directorate of General GST Intelligence (DGGI). The Petitioner challenged the freezing of three accounts held in the name of Unity Traders and its proprietor.The Court noted that an appeal against the impugned Order-in-Original dated 28th January 2025 has been filed under Section 107 of the Central Goods and Services Tax Act, 2017, which "automatically stayed" the final order. Consequently, the Court directed Kotak Mahindra Bank to immediately de-freeze all three accounts (Nos. 1214253053, 5046084137, and 5046420966) and lifted the debit freeze. The Department was also directed to communicate with the Bank to ensure the lifting of the freeze.The petition was disposed of accordingly, with pending applications also disposed.