In Special Civil Application No. 6777 of 2023 -GUJ HC- Gujarat High Court sets aside provisional attachment of petitioner's bank account in tax dispute, allows payment in instalments
Justice N.V. Anjaria & Justice Devan M. Desai [27-04-2023]

Read Order: NirajkumarNareshkumarLakhyani (Pro. Of M/S Om Multitrade) V. State of Gujarat

Chahat Varma

New Delhi, July 11, 2023: The High Court of Gujarat has ruled in a tax dispute case and has set aside the provisional attachment of the current bank account of the petitioner held with YES Bank Limited. The court held that since the petitioner had undertaken to pay the disputed tax liability of Rs. 2,13,04,290 in 15 equal monthly instalments, the attachment of the bank account should be lifted immediately.

In the matter at hand, the petitioner had received summons under section 70(1) of the Central Goods and Services Tax Actand under section 70(1) of the Gujarat Goods and Services Tax Act, following which the authorities attached their bank account.

During the court hearing, the petitioner expressed their willingness to pay the disputed tax liability and offered to do so in monthly instalments.

The division bench of Justice N.V. Anjaria and Justice Devan M. Desai noted the petitioner's readiness to fulfil their tax obligations, while preserving their rights and contentions for future adjudicatory proceedings.

As a result, the court decided to set aside the provisional attachment order, allowing the petitioner to proceed with the agreed payment plan.