The Kerala High Court has directed the State Tax Officer to review the case anew after Goods and Service Tax ( GST ) officers seized the taxpayer’s bank account, despite the taxpayer having settled GST arrears.
The petitioner is an assessee under the provisions of the Central Goods and Services Tax Act/State Goods and Services Tax Act, 2017. A Show Cause Notice (SCN) dated 28.10.2014 was issued to the petitioner by the inspecting assistant commissioner of commercial tax, demanding an amount of Rs. 57,553/- for the assessment years 2005-06 and 2008-09.
The petitioner challenged the SCN before this Court by filing WP(C) No.30070/2014. This Court, vide judgment and order dated 13.11.2014, disposed of the said writ petition by directing the commercial tax officer therein to consider and pass appropriate orders on the petitioner’s representation, in accordance with the law, after giving an opportunity of hearing to the petitioner, at the earliest.
In the present writ petition, the petitioner has approached the High Court against the recovery notice dated 22.5.2023, issued by the state tax officer, demanding arrears of tax amounting to Rs. 88,476/- for the years 2005-06, 2008-09, and 2012-13. The petitioner has represented that the said notice was submitted before the state tax officer, stating that the petitioner has already paid the arrears for the assessment years 2005-06 and 2008-09, and that the excess amount paid by them may be refunded.
ESM. Kabeer, representing the petitioner, submitted that without considering the petitioner’s contention submitted before the state tax officer, a prohibitory order dated 24.1.2024 was issued, and the petitioner’s bank account has been attached.The bench of Justice Dinesh Kumar Singh observed that the present writ petition was allowed, the impugned order, the prohibitory order issued by the state tax officer dated 24.1.2024, was set aside, and the matter is remanded back to the State Tax Officer.
The State Tax Officer is also directed to consider the representation of the petitioner and pass fresh orders in accordance with the law, expeditiously. The petitioner is directed to appear before the state tax officer. Any pending interlocutory application in the present writ petition stands dismissed.
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