Published on: February 1, 2024 at 18:53 IST
Court: High Court of Patna
Citation: Sita Pandey V. State of Bihar (2023)
Honourable High Court of Patna has held that Goods and Services Tax Authorities have do not have authority to freeze the bank account or recover the tax from the bank account of any person as it being derogation of the established principles of rule of law. It is held that any recovery which is not in consonance of the law must be refunded to the persons. It is further held that if the person is able to win his position on tax liability the he is further be entitled to claim interest from the Goods and Services Tax Department.
21. Hence, what was required to be paid by the assessee, for maintaining an appeal before the Appellate Tribunal, if constituted, was Rs. 7,56,644.00 being the twenty per cent of the tax dues under the BGST and CGST Act. Hence, the balance amounts from the total sums forfeited of Rs. 69,88,322.00 recovered shall be paid over to the assessee within a period of two weeks from today, failing which interest shall run at the rate of 12 per cent per annum. If the amounts are satisfied within two weeks, as directed hereinabove, it is made clear that if eventually the demand is confirmed against the assessee, there shall not be any interest claimed under the statute between the date on which the amounts were credited by the banks as per Annexure-3 order and the date of refund as directed hereinabove; since the State had the benefit of the amounts in its coffers. If the liability is set aside then for the periods the assessee was deprived of the amounts recovered, she shall be entitled to claim interest from the department.
Drafted By Abhijit Mishra