HC Set-aside Attachment of Bank a/c as Major Part of Tax Liability Was Already Recovered From Assessee’s ECL

Case Details: North Land Construction v. State of West Bengal - [2024] 166 taxmann.com 127 (Calcutta)

Judiciary and Counsel Details

• Raja Basu Chowdhury, J.
• Promit Majumdar & Uzma Ali for the Petitioner.
• Anirban Ray, Ld. GP, T.M. Siddiqui, Tanoy Chakraborty & Saptak Sanyal for the Respondent.

Facts of the Case

The petitioner had filed return for the tax period February, 2018 to March, 2018 on 31-7-2019. Thereafter, the notice was issued by the department and determination was done under Section 73 of CGST Act. The assessee’s bank account was also attached by issuing a notice. The petitioner filed writ petition and submitted that major part of tax liability had already been recovered from electronic credit ledger. However, the department attached bank account and it was contended that as on today only a sum of Rs.61,078/-was outstanding.

High Court Held

The Honorable High Court noted that the major part of tax liability had already been recovered from the petitioner’s electronic credit ledger and only Rs. 61,078 was outstanding. Moreover, as per amendment in Section 16 of CGST Act, 2017, the registered tax payers have been permitted to take ITC in return which are filed up to 30th November, 2021 for the financial years 2017-18, 2018-19, 2019-20 and 2020-21. Thus, the notice attaching petitioner’s bank account was to be set aside and matter was to be remanded.