Can Bank A/c be Freezed on the Basis of Ex-Parte Ordered without affording Hearing i.e., in Voidation of Principles of Natural Justice?

De-Freezing of Bank Account-No sufficient time was afforded to the petitioner to represent his case and order passed ex parte in nature. Therefore, de-freezing of bank account should be immediately done.

De-Freezing of Bank Account-Facts of the Case

De-Freezing of Bank Account-Petitioner filled Writ Petition Claiming multiple relief :

• Relief against order under section 74 dated 19-2-2020 “demand of tax on the ground of excess claim of input tax credit for the period of 2018-19”.
• Relief against order passed by the Adjudicating Authority for the demand of tax on the ground of excess amount of input tax credit for the period 2018-19.
• Relief against order in Form GST DRC – 07.
• Relief against order in GST DRC – 13 attaching the bank accounts for recovery of the whole of the amount of tax, interest and penalty in dispute.

Patna High Court Held

De-Freezing of Bank Account-Honorable HC states Assessing Authority for deciding the case afresh.

In conclusion, HC forms an opinion that order is in violation of principles of justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case and order passed ex parte in nature, does not assign any reasons sufficient even decipherable from the record, as to how the officer could determine the amount due and payable by the assessee.

HC dispose of the writ petition on mutually agreeable terms as follows :

• Quash and set aside the impugned Notice, dated 19-2-2020 issued by the Assistant Commissioner of State Tax.
• HC direct for de-freezing/de-attaching of the bank account(s) of the writ-petitioner, should be done immediately.
• The Assessing Authority shall decide the case on merits after complying with the principles of natural justice.
• The instant petition stands disposed of in the aforesaid terms.

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Rakesh Roshan

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Patna High Court