Attachment of Bank Account for Disputed Interest Pending GSTAT Appeal & Full Tax Payment
Bar Bulletin and the Judgment dated 27.10.2026 of the High Court of Bombay in Writ Petition No.14038 of 2026 of Roadway Solutions India Infra Ltd Vs. The State of Maharashtra and others with connected writ petitions.
The case of the petitioner is that the proceedings are initiated for recovery of interest although the entire amount of tax has already been deposited by the petitioner and the Appeal Order dated 13th July 2026 of the First Appellate Authority, upholding such interest, has been challenged by the petitioner before the Goods and Services Tax Appellate Tribunal (“Tribunal”, for short), 3 Uploaded on – 27/10/2026 Downloaded on – 28/10/2026 16:02:11 Bhogale under Section 112 of the said Act.
Through five separate notices dated 29th September 2026, issued under Section 79(1)(c) of the said Act, the respondent No.3 5 directed petitioner’s Banks to pay a sum of Rs.22,12,15,180/- to the Government forthwith or upon the money becoming due or being held on account of the petitioner. 9. It is the contention of the petitioner that the GST Department’s initiation of recovery proceedings and freezing of bank accounts of the petitioner intermittently has resulted in hampering the business activities of the petitioner.
A perusal of Section 107(7) of the CGST/MGST Act indicates that once an appeal has been filed, after making the statutorily required pre-deposit as applicable before the First Appellate Authority, recovery proceedings for the balance amount is deemed to have been stayed. Likewise, after filing an appeal before the Tribunal, when the petitioner has made the statutorily required pre-deposit under Section 112(8) of the CGST/MGST Act, 27 recovery proceedings for the balance amount are deemed to have been stayed. In this context, for the facility of convenience, Section 112(8) and 112(9) of the CGST/MGST Act.
We therefore have no hesitation in holding that the recovery initiated is in the teeth of the provisions of Section 112(9) of the CGST/MGST Act.
