Madras High Court: GST Department to Unfreeze Bank Account Following Payment of Tax Instalments

Fact and issue of the case

This Writ petition coming up for orders on this day, upon perusing the petition and the affidavit filed in support thereof and upon hearing the arguments of Mr. S. KRISHNANAND, Advocate for the petitioner and of Mr. R. NANDAKUMAR, Senior Standing Counsel assisted by Mr. S. RAGAVENTHRE, Junior Standing counsel on behalf of the Respondents, the Court made the following order:- This writ petition is filed challenging the assessment order and the consequential imposition of penalty and interest.

The contention of the petitiner is that the petitioner is liable to pay the tax and the interest portion which have been quantified by the respondents. However, the respondents have issued orders to freeze the petitioner’s bank account and also cancelled the GST registration. The case needs elaborate consideration.

Observation of the court

Therefore, the petitioner is directed to pay the entire tax portion in four equal installments. As far as the interest portion is concerned, that will be considered after the payment of the tax liability.

The petitioner is directed to pay the first installment within a period of one week from the date of receipt of a copy of this order. On such payment the respondents are directed to de-freeze the petitioner’s bank account.

The respondents are directed to file counter affidavit.