IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF OCTOBER, 2019 PRESENT THE HON’BLE MR.ABHAY S. OKA, CHIEF JUSTICE AND THE HON’BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT APPEAL NO. 2942 OF 2019 (T-RES) BETWEEN:
MR.B.S. RAJASHEKHAR PROPRIETOR M/S. GEMINI SECURITY AND ALLIED SERVICE NO.2345/19, MUKAMBIKA NILAYA 5TH CROSS, 2ND FLOOR, LENIN NAGAR NITTUVALLI NEW EXTENTION DAVANAGERE – 577 004.
(BY SHRI RAJESH SHETTIGERE, ADVOCATE) AND:
... APPELLANT 1. THE COMMISSIONER- CENTRAL GST BENGALURU NORTH WEST COMMISSIONERATE 2ND FLOOR, SOUTH WING BMTC BUS STAND COMPLEX SHIVAJI NAGAR, BENGALURU – 560 051.
2. THE BRANCH MANAGER CORPORATION BANK MANDIPET BRANCH 626, 1ST FLOOR, PB NO. 73, MANDIPET, DAVANAGERE – 577 001.
(BY SHRI VIKRAM HUILGOL, ADVOCATE R-1 NOTICE TO R-2 DISPENSED WITH) ---
... RESPONDENTS THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE INTERIM ORDER DATED 27.06.2019 IN SO FAR AS FURNISHING SECURITY FOR THE REMAINING AMOUNT WITH FIRST RESPONDENT PASSED IN WP NO. 25031/2019 AND ETC.
THIS APPEAL COMING ON FOR ORDERS THIS DAY, CHIEF JUSTICE DELIVERED THE FOLLOWING:
JUDGMENT Heard the learned counsel appearing for the appellant and the learned counsel appearing for the first respondent.
2. The appellant filed the writ petition before the learned Single Judge challenging the communication dated 03rd April 2019 directing the provisional attachment of his Bank Account issued in exercise of the powers under CGST Act, 2017. The said notice of provisional attachment was for the period ending January 2019. It is this communication which was subjected to a challenge before the learned Single Judge.
3. The learned Single Judge stayed the impugned order subject to deposit of 50% of the balance demand. By the order dated 18th July 2019, the second respondent was permitted to withdraw the 50% of the balance demand made by the first respondent from the Bank Account freezed. The order dated 27th June 2019 imposing the condition of deposit of 50% is the subject matter of challenge in this appeal.
4. Today, the appellant has tendered an Affidavit annexing thereto, necessary documents evidencing the payment of CGST from August 2018 to March 2019 amounting to Rs.03,93,81,214.00/-.
5. The learned counsel appearing for the first respondent does not dispute that the entire amount due and payable, for which the provisional attachment under Section 83 of the CGST Act was issued has been paid by the appellant.
6. In view of the aforesaid factual position, the appeal must succeed and we pass the following order:-
(i) The impugned communication dated 03rd April 2019 (Annexure-A to the writ petition) is hereby quashed and set aside;
(ii) It follows that the impugned order passed in the writ petition has become inoperative;
(iii) The appeal is allowed in the above terms.
Sd/- CHIEF JUSTICE Sd/- JUDGE Srl.