1. This petition filed under Article 226 of the Constitution of India prays for the following reliefs:

“(a) That this Hon’ble Court be pleased to issue a Writ of Certiorari or a Writ in the nature of certiorari or any other appropriate Writ, order and direction under Article 226 of the Constitution of India, calling for the records pertaining to the impugned Notice/Letter/Order dated 25 th August, 2023 bearing Ref. No. DIGGING/INV/GST/688/2022-GrE (Exhibit A hereto) addressed by Respondent No.2 to Respondent No.4 and after ascertaining its legality and validity, quash and set aside the said Notice/ Letter/Order dated 25 th August, 2023 (Exhibit A hereto) as well as any consequential notices issued by Respondent Nos. 1 to 5 including but not limited to Letter dated 29 th August, 2023 (Exhibit B) addressed by Respondent No.4 to the Petitioner and/or the action taken by Respondent No. 5 of freezing the bank account of the Petitioner No. 1 or any other action taken pursuant to the said Notice (Exhibit A hereto);

(b) That this Hon’ble Court be pleased to restrain the Respondents by way of an order of injunction from attaching any of the 22 Bank Accounts of the Petitioner linked to the petitioner No. 1’s PAN bearing No.AADCS9231R, a list of which is set out in Paragraph 4 hereinabove;

(c) That this Hon’ble Court be pleased to issue a Writ of Mandamus or a Writ in a nature of mandamus or any other writ, order or direction under Article 226 of Constitution of India, directing Respondent Nos. 2 and 3 to initiate action against Respondent No.6 for recovery of GST amounts, if any, for the services provided to the Petitioner by the Respondent No.6 under the invoices raised during the contract period;

(d) That pending the admission, hearing and final disposal of the present Petition:

(i) This Hon’ble Court be pleased to stay the effect and operation of the impugned Notice/Letter/Order dated 25 th August, 2023 bearing Ref.No.DGGI/INV/GST/688/2022-GrE (Exhibit A hereto) addressed by Respondent No.2 to Respondent No. 4 and after ascertaining its legality and validity, quash and set aside the said Notice / Letter / Order dated 25 th August, 2023 (Exhibit A hereto) as well as any consequential notices issued by Respondent Nos. 1 to 5 including but not limited to Letter dated 29 th August, 2023, (Exhibit B) addressed by Respondent No.4 to the Petitioner and/or the action taken by Respondent No. 5 of freezing the bank account of the Petitioner No. 1;

(ii) the Respondent No.4 be directed to raise the debit freeze on Petitioner’s Current Account Nos.3512816480 and 3512816053 and the Term Deposit Account No. 3548696728 held with the Respondent No.4, as stated in Letter dated 30 th August 2023 addressed by the Respondent No.4 to Petitioner (Exhibit CC hereto);

(iii) the Respondent No.5 be directed to refrain from blocking the Petitioner’s OD A/c No. 0111256053060, Current A/c. 0111201004946 and EEFC A/c. 1589241001096 pursuant to the Notice at Exhibit A hereto; and

(iv) This Hon’ble Court be pleased to restrain Respondent Nos. 1 to 3 from attaching any of the 22 Bank Accounts of the Petitioner linked to the Petitioner No 1’s PAN bearing No.AADCS9231R, a list whereof is set out at Paragraph 4 hereinabove or taking any action pursuant to the impugned Notice dated 25 th August 2023 at Exhibit A hereto;

(v) This Hon'ble Court be pleased to raise the debit freeze in the sum of Rs 2,61,00,000/- (Rupees Two Crore Sixty One Lac only) imposed on the electronic credit ledger of the Petitioner No.1 on the GST portal pursuant to the email dated 6 th September 2023 addressed by Respondent No. 7, the Deputy Commissioner of State (annexed at Exhibit A Page 173 to the Additional Affidavit dated 6 th September 2023);

e) For Ad-interim reliefs in terms of prayer clause (d).

f) For costs of this Petition;

g) For such further and other reliefs as the nature and circumstances of the case requires.”

2. We have heard the learned Counsel for the parties on the present proceedings on 7th September 2023, when we passed the following order:-

“. Leave to amend. Re-verification is dispensed with. Amended copy of the petition be served on the Respondents by tomorrow. Let the reply affidavit be placed on record on or before the adjourned date of hearing, however, latest by serving on the Petitioners by 12 th September 2023 evening.

2. All contentions as urged before us today shall be considered at the adjourned date of hearing and an endeavour would be made to pass appropriate order. The Overdraft Accounts of the Petitioners, as set out in the second table at page 67, Exhibit-P shall stand de-freezed as it is settled position in law that the Revenue cannot freeze the overdraft accounts, as held by the decision of this Court in the case of M/s. Sargam Foods Pvt. Ltd. Vs. State of Maharashtra in Writ Petition No.4313 of 2008.

3. In the meantime, if there is any hearing fixed, we have not stayed the hearing where the Petitioners are called upon to attend the same.

4. At this stage, learned Counsel for the Petitioners pray that the Revenue has blocked the ITC credit ledger balance of Rs.2.61 crores on 6 th September 2023. He has prayed that this credit be defreezed. After hearing the parties insofar as this prayer of defreezing the credit ledger balance is concerned, we direct that if the Petitioners furnishes a bank guarantee of Rs.1.5 crore to the Revenue, in that event, the Revenue on receipt of such bank guarantee shall defreeze the blocking of the ITC credit balance.

5. Ordered accordingly.

6. The proceedings be listed on 13 th September 2023 at 4.00 p.m. for further hearing.”

3. Admittedly, the benefit of such order has been availed by the Petitioners. Thereafter, on 20th September 2023, the Court had passed the following order:

“1. Leave to amend the cause title of the proceedings so as to implead ‘the State of Maharashtra through the Designated Officer’ as added respondent. Let the amendment be carried out by tomorrow. Learned Advocate for the petitioners is permitted to issue a notice to the added respondent by all permissible modes and place on record an affidavit of service. In addition to such notice, Advocate for the petitioners shall also serve the office of the Government Pleader, Original Side, High Court, Bombay. Re-verification is dispensed with.

2. Reply affidavit on behalf of respondent Nos.2 and 3 is placed on record. Mr.Lohia, learned Counsel for the petitioners has stated that a rejoinder affidavit is also sought to be filed. Let the same be placed on record.

3. Mr.Lohia has drawn our attention to our order dated 7 September 2023 and more particularly, paragraph 4 thereof wherein we have recorded a statement on behalf of the petitioners that the revenue has blocked the ITC credit ledger balance of Rs.2.61 crores on 6 September 2023. Insofar as such statement is concerned, Mr. Lohia submits that in fact, there is a negative charge. Mr. Mishra, learned Counsel appearing for respondent Nos.2 and 3 submits that such charge is of the State authorities under the CGST Act.

4. Parties would be required to be heard on such issues. Today the State of Maharashtra is not before the Court. Insofar as the petitioners’ statement that they would furnish a bank guarantee of Rs.1.5 crores is concerned, it appears that this would depend on the issue of negative credit. The petitioners’ contention is that if it is the issue of negative credit, the petitioners would not be required to furnish a bank guarantee.

5. Accordingly, stand over to 26 September 2023. High On Board.

6. All contentions of the parties are expressly kept open.

7. The pendency of the present proceedings would not preclude the petitioners to seek redressal of the issue with the department.”

4. On the above backdrop, today proceedings are before us. On behalf of Respondent No.2 as also on behalf of the State Authorities reply affidavit has been placed on record. There is also a rejoinder affidavit filed on behalf of the Petitioners.

5. Having heard learned Counsel for the parties on the present proceedings for quite some time, considering the peculiar facts of the case, we are of the opinion that it will be appropriate for the Petitioners to take recourse to the provisions of sub-rule (5) of Rule 159 of the Central Goods And Service Tax Rules (“CGST Rules”) whereby an opportunity is available to the Petitioners to file its objections in regard to the attachment of the Petitioner’s/Assessee's property.

6. It would be appropriate to extract sub-rule (5) of Rule 159 of the CGST Rules, which reads thus:-

“Rule 159. Provisional attachment of property.-

(1)…….

(2) …..

(3) ….

(4) …..

(5) Any person whose property is attached may file an objection in Form GST DRC-22A to the effect that the property attached was or is not liable to attachment and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in Form GST DRC-23.

(6) …...”

7. In somewhat similar circumstances, we have permitted a similar course of action in the case of Ashok Kumar Vishwakarma vs. Union of India & Ors. (Order dated 4th October 2023 Writ Petition No.11326 of 2023) .

8. We, accordingly, dispose of this petition permitting the Petitioners to make a representation/raise an objection against the attachment as permitted by sub-rule (5) of Rule 159 of the CGST Rules. Let such representation/objection be made to Respondent No.2 - Principal Additional Director General DGGI, JZU, Jaipur within one week from the date of uploading the present order and if such a representation is made, then the same be disposed of as expeditiously as possible on or before 10th November 2023, without any objection as to limitation as the Petitioners were pursuing the present petition bonafide. Needless to observe that the Petitioners have already availed benefit of the order dated 7th September 2023 as granted in para 2 of the said order.

9. All contentions of the parties are expressly kept open.

10. Disposed of with no costs.

11. Needless to observe that as the State Authorities have acted on the instructions as prayed by Respondent No.2, the State Authorities shall take appropriate decision on the basis of whatever would be deiced by Respondent No.2.