GST UPDATE

Desk of CA. Praveen Sharma

Series- 432

Release of Bank account as attachment~ Major Relief

1- J.L. Enterprises V/s Assistant Commissioner, State Tax, Ballygunge Charge- Calcutta High Court.

2- In the instant case, it relates to the recovery of GST. Subsection 5 of Section 159 clearly gives adequate power to the petitioner to file an objection for releasing the bank account or, in the instant case cash-credit facility. In view of such circumstances, when there is efficacious relief in the statute itself, this Court is of the view that the petitioner should adopt such efficacious relief.

3- the petitioner has approached this Court under Article 226 of the Constitution of India.

4- It is submitted by the learned advocate for the petitioner referring to a decision of this Court in the case of Jugal Kishore Das Vs. Union of India reported in 2013 that the cash-credit limit is a facility provided by the bank to its customers to use and utilize the money and if such facility is availed of, it would attract the interest to be charged for the same so utilised. It is further held that the cash-credit facility is not a debt to be attached by the respondent authority.

Case referred/cited :-

Radha Krishan Industries Versus State of Himachal Pradesh — SC.

Manish Scrap Traders Versus Principal Commissioner — Guj HC.

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CA. Praveen Sharma

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