IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21st DAY OF FEBRUARY, 2019 BEFORE THE HON’BLE MRS.JUSTICE S.SUJATHA W.P.Nos.7898 & 8469 – 8470/2019 (T –RES) BETWEEN :
1. WHITEFIELD REFRACTORIES (P) LTD., # 105, ‘R R TAKT’ 37, BHOOPASANDRA MAIN ROAD, SANJAYANAGAR, BANGALORE - 560094 REP. BY ITS AUTHORIZED REPRESENTATIVE SRI NARAYANDAS JAJU, AGED 59 YEARS 2. VIJAYALAKSHMI HYDRO POWER (P) LTD., # 104 & 105, ‘R R TAKT’ 37, BHOOPASANDRA MAIN ROAD, SANJAYANAGAR, BANGALORE - 560094 REP. BY ITS AUTHORIZED REPRESENTATIVE SRI NARAYANDAS JAJU, AGED 59 YEARS 3. GITA REFRACTORIES PVT. LTD., # 105, ‘R R TAKT’ 37, BHOOPASANDRA MAIN ROAD, SANJAYANAGAR, BANGALORE - 560094 REP. BY ITS AUTHORIZED REPRESENTATIVE SRI NARAYANDAS JAJU, AGED 59 YEARS ...PETITIONERS (BY SRI K.M.SHIVAYOGISWAMY, ADV.) AND :
1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT) 6.5, DVO - 6, 14TH CROSS, PEENYA II STAGE BANGALORE - 560047 2. THE MANAGER STATE BANK OF INDIA J C ROAD, KALASIPALYAM NEW EXTENSION, KALASIPALYA BENGALURU -560002 …RESPONDENTS (BY SRI T.K.VEDAMURTHY, AGA.) THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE ISSUED BY THE R-1 ATTACHING THE PETITIONERS BANK ACCOUNTS WITH THE R-2 DATED 09.01.2019 VIDE ANNEXURE-A.
THESE PETITIONS COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R Learned AGA accepts notice for respondent No.1.
2. The petitioner has challenged the notice issued by the respondent No.1 attaching the petitioners bank accounts with the 2nd respondent as per Annexure-A inter alia sought for a direction to the 2nd respondent- Bank not to freeze the petitioners bank accounts as the petitioners are not defaulters as named in the notice issued under Section 45 of the Karnataka Value Added Tax Act, 2003 (‘Act’ for short).
3. It is the grievance of the petitioners that the defaulter company M/s Vishal Concrete Works is no way concerned with these petitioners companies. On the notice issued under Section 45 of the Act in as much as recovery of tax arrears against M/s Vishal Concrete Works, the bankers have issued the communication to freeze the accounts of the petitioners herein.
4. Learned AGA fairly submits that no garnishee notice was issued to the petitioners and any communication by the bankers has to be clarified by the petitioners.
5. Having heard the learned counsel for the parties and perusing the material on record, it is not in dispute that the garnishee notice under Section 45 of the Act has been issued to the Directors and Partners of M/s Vishal Concrete Works. If the bankers of these petitioners have issued any communication to freeze the accounts of the petitioners herein, the petitioners are required to clarify the same with the bankers. However, considering the totality of the circumstances of the case, this Court directs the bankers not to proceed with the petitioners accounts in terms of Annexure-A issued by the Department.
With the aforesaid observations, writ petitions stand disposed of.
Sd/- JUDGE Dvr: