MJ Bizcrafts LLP Vs Central Goods And Services Tax Delhi South Commissionerate (Delhi High Court)
Delhi High Court has set aside the provisional attachment of bank accounts belonging to MJ Bizcrafts LLP, ruling that such action is unsustainable once an appeal against an original order has been filed and the mandatory pre-deposit made under Section 107 of the Central Goods and Services Tax (CGST) Act, 2017. The decision, delivered on July 16, 2025, underscores the automatic stay provision within the GST framework, offering clarity on taxpayer rights during the appeal process.
MJ Bizcrafts LLP had approached the High Court challenging a communication dated May 29, 2025, which provisionally attached its bank accounts. The attachment stemmed from an Order in Original issued on January 31, 2025. The petitioner contended that the very order forming the basis of the attachment was already under appeal, and crucially, the requisite 10% pre-deposit had been paid as stipulated by law.
During the hearing, Mr. R.P. Singh, counsel for MJ Bizcrafts LLP, presented arguments relying on established judicial precedents to support the petitioner’s position. A key reference was the Delhi High Court’s own decision in M/s Unity Traders v. Principal Additional Director, DGGI & Anr (W.P.(C)7239/2025). In that case, the court had observed that a business, particularly a running concern, should not be unduly prejudiced by a complete attachment of bank accounts, especially when the issue of alleged GST evasion remains under adjudication. The Unity Traders judgment highlighted that even if a significant amount of evasion is alleged, it does not imply immediate full payment, and business operations should not be hampered prematurely.
