The Bombay High Court lifted the provisional attachment petitioner’s share in escrow account subject to maintaining credit balance of Rs. 5,00,000.
The Petitioners, Abhi Engineering Corporation Pvt. Ltd. had initially challenged the provisional attachment order issued by the Commissioner of Central Goods and Services Tax and Central Excise, Mumbai provisionally attaching escrow account held in Bank of Baroda, Mahim Branch.
The provisional attachment order automatically came to an end on the expiry of one year under the provisions of Section 83(2) of the Central Goods and Services Act, 2017.
The Respondent Authority has issued fresh provisional attachment order of the said escrow account during the pendency of the writ petition which was challenged by the petitioners.
The Petitioners have filed their statutory objections under Rule 159(5) of the CGST Rules in response to the fresh provisional attachment order before respondent authority shall give a hearing to the petitioners and decide their objections in accordance with the provisions of the CGST Act and the CGST Rules.
The division bench of Justice Milind N. Jhadav and Ujjal Bhuyan lifted the provisional attachment in so far as petitioner’s share in the escrow account is concerned subject to maintaining credit balance of Rs. 5,00,000 by petitioner out of its share and direct that respondent would be at liberty to transfer or remit the proportionate amount due to petitioner to the account of petitioner and maintain balance of Rs. 5,00,000 till the decision is taken.
The court held that needless to state remaining 3% share belonging to respondents in the escrow account shall continue to remain attached in terms of the provisional attachment order.
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