Ankush Gopalbhai Bahediya, Prop. Of Daduram Metals Vs State Of Gujarat

Article 226 of the Constitution of India allows individuals to petition the courts for directions or orders if they believe their rights have been violated. In this case, the petitioner is seeking relief from the court to lift the attachment placed on three bank accounts: (i) Current Account No.32444283699 with State Bank of India, Thakkar Bappa Nagar, Ahmedabad, (ii) Current Account No.918020097072117 with Axis Bank, Bapunagar, and (iii) Savings Account No.919010045294509 with Axis Bank, Bapunagar, Ahmedabad.

The attachment on these accounts stems from a search operation conducted from 29th June 2022 to 5th July 2022. During this operation, the petitioner was served with a copy of Summons under Section 74(5) of the GST Act and was also summoned. The specific details of the summons and the nature of the alleged violation are not provided in the summary.

The petitioner contends that the attachment on the bank accounts is unjustified or excessive and seeks the court’s intervention to have it lifted. The reasons behind the attachment, as well as any legal arguments presented by the respondent authority, are not detailed in the summary.

The petitioner’s argument likely revolves around demonstrating that the attachment is causing undue hardship or that there are legal grounds to contest it. This might involve proving that the funds in the attached accounts are not related to the alleged violation or that the attachment is disproportionate to the alleged offense.

The outcome of the petition will depend on the arguments presented by both parties, as well as the interpretation of relevant laws and precedents by the court. If the court finds in favor of the petitioner, the attachment on the bank accounts will likely be lifted. Conversely, if the court rules in favor of the respondent authority, the attachment may remain in place, subject to further legal recourse by the petitioner.

The petitioner, invoking Article 226 of the Constitution of India, seeks relief from the court to lift the attachment placed on their bank accounts by the respondent authority. The attachments in question include the petitioner’s current account with State Bank of India and two accounts with Axis Bank, one being a current account and the other a savings account, all located in Ahmedabad.

The attachment was initiated following a search operation conducted from June 29, 2022, to July 5, 2022. The petitioner was served with a summons under Section 74(5) of the GST Act and subsequently summoned for proceedings. An order was issued on June 30, 2022, under Section 83 in FORM GST DRC-22, attaching the mentioned bank accounts.

The petitioner contests the attachment, arguing that there was no separate order for attaching one of the Axis Bank current accounts. Additionally, they claim that their representation challenging the attachment was not duly considered. They assert that no pending proceedings under any Acts warranted the attachment, rendering it unlawful.

The petitioner argues that the power under Section 83 is drastic and must be exercised strictly following Rule 159 of the GST Rules. Therefore, they petition the court for the following reliefs:

1. Quashing of the impugned order of attachment of bank accounts in FORM GST DRC-03.

2. Setting aside orders passed under Section 83, read with Rules 159, in FORM GST DRC-22, attaching their stock.

They seek a writ of mandamus or any other appropriate writ, order, or direction from the court to grant the requested relief.

The petitioner in this case has filed a petition under Article 226 of the Constitution of India seeking the direction to lift the attachment on their bank accounts held with State Bank of India and Axis Bank in Ahmedabad. This attachment occurred following a search operation conducted from June 29, 2022, to July 5, 2022, during which the petitioner was served with a summons under Section 74(5) of the GST Act and subsequently summoned. An order under Section 83 was issued on June 30, 2022, attaching the mentioned bank accounts.

The petitioner argues that there was no separate order for attaching one of the current bank accounts with Axis Bank and that their representation has not been duly considered. They claim that there are no pending proceedings under any Acts, making the attachment under Section 83 invalid. They emphasize the need for strict adherence to Rule 159 of the GST Rules regarding the exercise of power under Section 83.

The prayers sought by the petitioner include quashing the impugned order of attachment and directing the respondent authorities to lift the attachment on the mentioned bank accounts and stock. They also request an ex-parte, ad interim order in their favor and any other orders deemed just and proper.

An affidavit-in-reply has been filed on behalf of respondent No.2, arguing that the petitioner has not offered property in lieu of the attachment of banks, citing a judgment in the case of Utkarsh Ispat LLP Vs. State of Gujarat.

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