The Madras High Court ordered fresh enquiry in the absence of notice on freezing of the bank account as it would be fair and equitable to give one more opportunity to the writ petitioner subject to being put on terms.
The main grievance of the writ petitioner, M/s. Srikals Graphics Private Ltd, is that the petitioner is paying their Commercial Sales Tax and Tamil Nadu Value Added Tax right from the year 2008-2009 without any default. However, in view of change of office from Ekkattuthangal to Guindy, the petitioner was not put on notice about any communication from the respondents and to their shock, the petitioner came to know that their bank account has been freezed for the non-payment of Rupees sixteen lakhs.
It is the case of the writ petitioner is that on coming to know about the alleged amount due to the department, he has already paid a sum of Rs.2 lakhs by way of demand draft in favour of the first respondent, The Assistant Commissioner (ST). According to the writ petitioner, they were never put on any notice about any proceedings or impugned notice and for the first time, the petitioner came to know about the same only when their bank account was freezed.
E.Ranganayaki, Special Government Pleader appearing for respondents submitted that notice has been issued on 08.03.2022 and only thereafter, further proceedings were taken to freeze the bank account. However, the petitioner vehemently denied the receipt of any such notice.
The Court of Justice PB Balaji observed that “This Court feels that it would be fair and equitable to give one more opportunity to the Writ Petitioner subject to being put on terms. Accordingly, this Writ Petition is allowed on condition that the petitioner shall pay a sum ofRupees six lakhs onlywithin a period of six weeks from the date of receipt of copy of this order.”
The Court ordered that on such payment, the respondents shall ensure that the bank account of Writ Petitioner shall be defreezed with immediate effect. Thereafter, it is needless to state that fresh enquiry shall be conducted by the first respondent and the petitioner shall be given opportunity of his personal appearance and also for providing documentary and oral evidence in respect of the alleged arrears due.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
