In Writ Petition No. 11054 of 2023 -KAR HC- Karnataka High Court directs Mindlogicx Infratec Ltd. to pay Rs. 1.59 Crore within 90 days in GST attachment case
Justice S Sunil Dutt Yadav [03-07-2023]

Read Order: Mindlogicx Infratec Limited V. Office of The Deputy Commissioner of Commercial Taxes

Chahat Varma

New Delhi, July 10, 2023: The Karnataka High Court has directed that the order of attachment of Sant Gadge Baba Amravati University will remain in effect for 90 days, during which the petitioner, Mindlogicx Infratec Limited, is required to pay a sum of Rs. 1,59,43,360 to the Deputy Commissioner of Commercial Taxes. This direction was given in light of the affidavit filed by the petitioner, wherein they undertook to make the payment within the specified time frame.

Brief issue involved in the present case was that the Deputy Commissioner of Commercial Taxes had issued an order assessing a total sum of Rs. 2,09,43,366, including GST, interest, and penalty, to be paid by the petitioner. Due to non-payment, the Deputy Commissioner of Commercial Taxes issued a notice seeking attachment of the petitioner's receivables from its clients. The petitioner filed the present writ petition against the said attachment.

During the proceedings, the petitioner submitted an affidavit stating that they had already paid Rs. 50,00,000 and undertook to pay the remaining sum of Rs. 1,59,43,360 to the respondent within 90 days from the date of the affidavit, which was on or before 03.10.2023.

The bench of Justice S Sunil Dutt Yadav noted the contents of the affidavit and vacated the orders of attachment at Annexures-H to L. However, the bench upheld the attachment of Sant Gadge Baba Amravati University.

The bench emphasized that there would be no further extension of time, and any default in payment would expose the petitioner to contempt of court proceedings. The tax authorities were also given the liberty to initiate recovery proceedings in the event of default. It was also clarified that the order of attachment at Annexure-M would be lifted if the payment, as undertaken in the affidavit, is made within the 90-day period.