Wingtech Mobile Communications (India) Pvt. Ltd. Vs Deputy Commissioner ST (Andhra Pradesh High Court)
Andhra Pradesh High Court held that attachment of bank account and retention of fund by the authorities after payment of 10% of the disputed tax amount i.e. after pre-deposit u/s. 107 of the GST Act is not justifiable. Accordingly, writ petition disposed of.
Facts- The petitioner has been served with an order of assessment, dated 02.08.2025, in which Rs.244,63,28,470/- has been demanded. Earlier to this, a notice dated 17.07.2025 had been issued for provisionally attaching the bank account of the petitioner. Immediately, thereafter, the 1st respondent issued a recovery notice, dated 19.08.2025, u/s. 79(1)(c) of the A.P. GST Act, for recovery of the said amount. On account of the said recovery notice which had also been sent to the 5th respondent-Bank, a sum of Rs.170 cores was paid out to the 1st respondent.
The petitioner, on account of the attachment of the bank account and on account of the fact that the entire amount available to the petitioner had been paid out to the 1st respondent, could not file an appeal. This was because, the petitioner was required to pay a sum of Rs.24.46 crores as the pre-deposit amount of 10% of the disputed tax. At that stage, the petitioner has approached this Court, by way of the present Writ Petition.
