Pre-deposit is allowed from Provisionally Attached Bank Account - Bombay High Court

This is to update you about an important?decision by?Hon’ble?Bombay?High Court (HC) in?the case of Bytedance (India) Technology (P.) Ltd.?v. Union of India,?2024?(160)?taxmann.com 714 wherein the Court held that pre-deposit is allowed from the bank which is provisionally attached by the revenue authorities.

Facts

• The Petitioner’s bank account was provisionally attached by the revenue after completion of adjudication process under GST.
• Thereafter, for assailing the adjudication order, the Petitioner wanted to file an appeal before the Appellate Authority for which a pre-deposit of 10 percent is required.
• Since the bank account was attached, the Petitioner filed a writ petition seeking usage of bank account for payment of pre-deposit.

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HC Decision

• The Court observed that the purpose of utilisation of money is not private but for maintaining the appeal. Therefore, the Court?allowed the Petitioner to withdraw money from the attached bank account for making pre-deposit

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GABA & CO. | Comments

A welcome decision since attachment of bank account would effectively mean that taxpayer cannot make pre-deposit and thus depriving him of his statutory right.

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Disclaimer:

The views expressed in the update are strictly personal, based on our understanding of the underlying law. We are not responsible for any injury, loss or cost arising to any person who refers this update and acts or refrains from any act accordingly. We would suggest that a detailed legal advice must be sought before relying on this update.