S K S Traders Vs Assistant Commissioner of State Tax
Date: September 18, 2024
Court: High Court
Bench: Andhra Pradesh
Type: Writ Petition
Subject Matter
Once an appeal is filed, continuation of the attachment and garnishee orders is impermissible
Summary
In this case, the Andhra Pradesh High Court examined the legality of the continuation of an order of attachment and a garnishee notice issued to the petitioner following an assessment order mandating the payment of ₹2,84,10,044. The petitioner had filed an appeal against the assessment and had complied with the requirement under Section 107 of the CGST Act by paying 10% of the disputed tax. The petitioner argued that, in light of the appeal and the payment made, the ongoing orders of attachment and garnishee proceedings should be lifted. After reviewing the facts and considering the petitioner’s compliance with the statutory requirements, the High Court held that no further tax could be recovered from the petitioner while the appeal was pending. The court ruled that the continuation of the attachment and garnishee orders was impermissible and contrary to the provisions of Section 107. Thus, the High Court set aside the attachment order and the garnishee notice, effectively providing relief to the petitioner from these recovering measures. The case was disposed of without costs, indicating no financial penalties or burdens were imposed on either party.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
Heard Sri J.N. Venkata Suresh Kumar, learned counsel appearing for the petitioner and learned G.P. for Commercial Tax for the respondents.
2. The petitioner had suffered an order of assessment, under the A.P. Goods and Services Tax, 2017 (for short GST Act), issued by the 2nd respondent dated 13.01.2023. Under this order of assessment, the petitioner was declared to be liable to pay Rs.2,84,10,044/-.
3. The 2nd respondent for recovery of the said amounts, had initiated proceedings whereby attachment order in FORM GST DRC – 22, dated 03.11.2022 and Garnishee notice in FORM GST DRC -13, dated 20.04.2023, were issued to respondents 3 to 5.
4. The petitioner had approached respondents 1 and 2, by way of a representation dated 07.07.2023, contending that the petitioner had filed an appeal against the said order of assessment and had also paid 10% of the disputed tax, as required under Section 107 of the Central Goods and Services Tax Act, 2017 and consequently, the orders of Garnishee and attachment would have to be raised.
5. The petitioner has approached this Court by way of the present writ petition, complaining inaction on the part of respondents 1 and 2 in lifting the said order of attachment and Garnishee and in considering the representation of the petitioner dated 07.07.2023, despite passage of more than one year.
6. In view of the fact that the petitioner has preferred an appeal and has paid 10% of the disputed tax, as required under Section 107 of the CGST Act, no further tax can be recovered from the petitioner, in pursuance of the order of assessment under appeal. In such circumstances, continuation of the order of attachment and Garnishee is clearly impermissible and against the provisions of Section 107 of the CGST Act.
7. Though, the relief sought is only a direction to dispose of the representation of the petitioner, dated 07.07.2023, there would be no point in driving the petitioner to go before respondents 1 and 2 for determination of a predetermined fact.
8. In the circumstances, this writ petition is disposed of setting aside the order of attachment dated 03.11.2022 of the 2nd respondent and Garnishee notice issued by the 1st respondents 20.04.2023. There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed.