GST Attachment Order Withdrawn After Appeal Admitted: Orissa HC Dismisses Writ as Infructuous [Read Order]

The petitioner, M/s.Manoj Distributor, had initially approached the High Court seeking to quash both the assessment order and the consequential attachment initiated for recovery.

However, during the course of proceedings, it was brought to the Court’s attention that the petitioner had already complied with the statutory condition of pre-deposit and preferred an appeal before the competent appellate authority, which remains pending adjudication.

Despite this, the department had earlier proceeded with the attachment of assets without considering the pending appeal. Realizing this oversight, the Original Authority subsequently issued a communication, withdrawing the attachment order in accordance with the provisions under Section 107(7) of the CGST Act.

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Chief Justice Harish Tandon and Justice M S Raman observed that “Since the order of attachment has already been withdrawn and the original order of assessment is the subject- matter of challenge in the statutory appeal, we thus feel that justice would not be sub-served to keep the instant writ petition pending.”

Considering the withdrawal of the attachment and the pendency of the appeal, the Court observed that keeping the writ petition pending would not serve any further purpose. Accordingly, the writ petition was dismissed as infructuous.

However, the Court clarified that such dismissal would not prejudice the petitioner’s rights in the statutory appellate proceedings.

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