Facts of the Case

Twisha Educational Private Limited, Sambalpur, sought to quash assessment orders dated 10.02.2022 for the periods 2017-18 and 2018-19, along with letters dated 15.03.2023, contending that its bank accounts had been attached by the Addl. CT & GST Officer, Sambalpur-1 Circle, without prior notice of the dues to be paid. The petitioner's subsequent application seeking release of the attached bank accounts was rejected by order dated 05.04.2023.

Issues Involved

  1. Whether the order rejecting the petitioner's application for revocation of bank account attachment, being appealable under Section 107 of the OGST Act, could be directly challenged in a writ petition.

Petitioner's Arguments

  • The petitioner was not given notice regarding the dues sought to be recovered before its bank accounts were attached, and its subsequent request to release the accounts was not properly considered before the impugned rejection order dated 05.04.2023 was passed.

Respondent's Arguments

  • The order dated 05.04.2023 rejecting the petitioner's application for revoking the attachment of bank accounts is appealable under Section 107 of the OGST Act; the petitioner ought to have approached the appropriate appellate authority instead of filing the present writ petition, which was accordingly not maintainable before the High Court.

Court Order / Findings

  • The Court accepted that the impugned order dated 05.04.2023 was an appealable order under Section 107 of the OGST Act.
  • Where an order rejecting revocation of a bank account attachment made in the course of GST assessment proceedings is expressly appealable under Section 107, a writ court will ordinarily decline to entertain a direct challenge and will instead relegate the taxpayer to the statutory appellate forum.
  • The writ petition was disposed of, granting the petitioner liberty to pursue its remedy before the appropriate appellate forum in accordance with law.

Important Clarification

  • An order rejecting an application to revoke attachment of a taxpayer's bank accounts, made in connection with GST assessment or recovery proceedings, is an appealable order under Section 107 of the GST Act; a writ petition challenging such an order directly will ordinarily be disposed of with liberty to pursue the statutory appeal rather than decided on merits.

Sections Involved

  • Section 107, OGST Act, 2017 - appeal to Appellate Authority against orders of adjudicating authority, including those relating to attachment.
  • Section 79, OGST Act, 2017 - recovery of tax, including attachment of bank accounts.

Decision – In Favour of

The writ petition was disposed of with liberty to pursue the statutory appeal -- a procedural outcome that leaves the underlying dispute open, in part in favour of the Assessee on the maintainability route it may now pursue, without a decision on merits.

Case Details

Court: High Court of Orissa at Cuttack
Case No.: W.P.(C) No.11358 of 2023
Coram: Justice Dr. B.R. Sarangi and Justice M.S. Raman
Date of Order: 01.05.2023

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