Delhi HC directs GST Authority to de-freeze Bank Account, Unblock Electronic Credit Ledger as relevant documents is furnished [Read Order]

The Delhi High Court has directed the GST Authority to de-freeze Bank accounts, and unblock Electronic Credit Ledger as relevant documents are furnished.

The petitioner, M/s Krishna Fashion has assailed the order whereby Petitioner’s current bank account maintained with Union Bank of India has been provisionally attached as well as the order blocking the Petitioner’s Electronic Credit Ledger. Petitioner has sought the directions to the Respondents to de-freeze the Petitioner’s account and unblock the Petitioner’s Electronic Credit Ledger.

The petitioner has stated that in accordance with Rule 86A(3) of the CGST Rules, 2017, the order blocking the Petitioner’s Electronic Credit Ledger had ceased to operate on 5th February 2021 on completion of one year. However, the same continues to be blocked and, thus, the Petitioner is unable to operate it. In support of her submissions, she relies on the orders of various High Courts where it has been held that Rule 86A(3) is a restriction which will cease to have effect after the expiry of one year from the date of imposing such restriction.

The petitioner states that the petitioner has been cooperating with the Investigating Agencies and the relevant documents have been furnished. She assures and undertakes to this Court that the petitioner will continue to appear as and when directed by the Investigating Authorities and will supply the documents which may be asked for.

The division bench of Justice Manmohan and Navin Chawla held that the present writ petition along with the pending application is disposed of with the directions to the respondents to de-freeze the petitioner’s bank account No.508502010001156 maintained with M/s.Union Bank of India, 16, Hargobind Enclave, Karkardooma, Delhi-110092 as well as unblock the Electronic Credit Ledger within three working days of uploading of the present order.

M/S. KRISHNA FASHION vs UNION OF INDIA & ORS.

CITATION: 2022 TAXSCAN (HC) 202

To Read the full text of the Order CLICK HERE

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