SC Upholds HC Order Revoking Bank Attachment with Safeguards for Tax Department

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  • Last Updated on 17 October, 2025

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bank attachment under GST

Case Details: Deputy Commissioner ST vs. Wingtech Mobile Communications (India) (P.) Ltd. [2025] 179 taxmann.com 343 (SC)

Judiciary and Counsel Details

  • Pamidighantam Sri Narasimha & Atul S. Chandurkar, JJ.
  • N. Venkataraman, A.S.G., Sahil Bhalaik, AOR, Tushar Giri, Siddharth Anil Khanna, Ritik Arora, Shivam Mishra, Ms Gulshan Jahan & Gowtham Polanki, Advs. for the Petitioner.
  • Balbir Singh, Sr. Adv., Rohan Khare, Priyam Bhatnagar, Advs. & Anmol Anand, AOR for the Respondent.

Facts of the Case

The petitioner, Deputy Commissioner of State Tax (ST), acting as the jurisdictional authority under the CGST Act and the Andhra Pradesh GST Act, initiated proceedings against the assessee, pursuant to an assessment order raising a tax demand. Before that, the petitioner provisionally attached the assessee’s bank account and issued a recovery notice. The attachment and recovery orders were revoked requiring the assessee to maintain specified funds in its bank account pending disposal of the appeal. The assessee approached the High Court, which directed release of the attached amounts subject to the filing of an undertaking to retain the refunded sum and maintain a prescribed balance until final adjudication. Aggrieved by these directions, the petitioner filed a Special Leave Petition (SLP) before the Hon’ble Supreme Court. The matter was placed before the Hon’ble Supreme Court.

Supreme Court Held

The Hon’ble Supreme Court held that no interference was called for with the order of the High Court, which had permitted revocation of the provisional attachment and refund of the recovered amounts. It was held that the High Court had rightly exercised its jurisdiction by directing the assessee to furnish an undertaking and maintain a prescribed balance in its bank account to safeguard the Department’s interest during the pendency of the appeal under section 107 of the CGST Act. It was further observed that the safeguards imposed were consistent with statutory requirements. Accordingly, the dismissed the SLP and directed that the amount retained in the assessee’s bank account shall remain unaltered.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied