Rajat Infra Developers Private Ltd Vs Union of India And 4 Others (Allahabad High Court)
Allahabad High Court dismissed the writ petition filed by Rajat Infra Developers Private Ltd. against the Union of India and other respondents regarding the provisional attachment of its bank account under Section 83 of the Uttar Pradesh Goods and Services Tax (UPGST) Act, 2017. The petitioner challenged the orders dated July 8, 2024, and October 30, 2024, issued by the tax authorities. The court had previously directed authorities to consider the objections of the petitioner, after which the objections were reviewed, and a reasoned order was issued. The petitioner was found to have collected service tax from clients but failed to deposit it with the Service Tax Department. As a result, a demand order under Section 74 of the Act was issued on December 30, 2024, confirming GST dues of ₹4.47 crore (CGST and SGST), along with penalties and interest.
The petitioner argued that the provisional attachment was arbitrary and cited the Supreme Court ruling in Radha Krishan Industries v. State of Himachal Pradesh, where excessive use of Section 83 was criticized. However, the High Court distinguished this case, noting that Rajat Infra Developers was given due opportunity to present objections, and the authorities followed legal procedures before confirming the tax liability. The court observed that the attachment was valid for a year, ending July 7, 2025, and emphasized that the petitioner has the right to appeal under the statutory framework. Consequently, the writ petition was dismissed, granting the petitioner the liberty to seek recourse through an appeal as per law.
