w w w . L a w y e r S e r v i c e s . i n



Abhi Engineering Corporation Pvt. Ltd. & Another v/s Union of India & Others


Company & Directors' Information:- M & B ENGINEERING LIMITED [Active] CIN = U45200GJ1981PLC004437

Company & Directors' Information:- G. R. ENGINEERING PRIVATE LIMITED [Active] CIN = U65990MH1990PTC058602

Company & Directors' Information:- G G ENGINEERING LIMITED [Active] CIN = L28900MH2006PLC159174

Company & Directors' Information:- V U B ENGINEERING PRIVATE LIMITED [Active] CIN = U29290MH2005PTC154033

Company & Directors' Information:- ABHI ENGINEERING CORPORATION PRIVATE LIMITED [Active] CIN = U45201MH2013PTC248313

Company & Directors' Information:- N S ENGINEERING COMPANY PVT LTD [Active] CIN = U29219TG1989PTC010511

Company & Directors' Information:- S S S ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U27205KA1981PTC004194

Company & Directors' Information:- H M G ENGINEERING LIMITED [Active] CIN = U45200MH1977PLC019533

Company & Directors' Information:- K R R ENGINEERING PRIVATE LIMITED [Active] CIN = U29309TN1989PTC016852

Company & Directors' Information:- G G ENGINEERING LIMITED [Active] CIN = U28900MH2006PLC159174

Company & Directors' Information:- D B ENGINEERING PRIVATE LTD [Active] CIN = U74899DL1986PTC026541

Company & Directors' Information:- G G ENGINEERING PRIVATE LIMITED [Active] CIN = U28900MH2006PTC159174

Company & Directors' Information:- J P ENGINEERING CORPN PVT LTD [Active] CIN = U34103WB1951PTC019638

Company & Directors' Information:- S N B ENGINEERING PRIVATE LIMITED [Active] CIN = U27106DL2007PTC301213

Company & Directors' Information:- T P W ENGINEERING LTD [Active] CIN = U27203WB1975PLC029939

Company & Directors' Information:- C L ENGINEERING PRIVATE LIMITED [Active] CIN = U34300PB1992PTC012057

Company & Directors' Information:- W & W ENGINEERING PRIVATE LIMITED [Active] CIN = U72900TN2003PTC051228

Company & Directors' Information:- M L R ENGINEERING PRIVATE LIMITED [Active] CIN = U74999TG2006PTC051974

Company & Directors' Information:- K B ENGINEERING CO PVT LTD [Active] CIN = U74160TG1988PTC008366

Company & Directors' Information:- R P ENGINEERING PVT LTD [Active] CIN = U29299WB1992PTC055482

Company & Directors' Information:- J & K ENGINEERING LIMITED [Active] CIN = U45203JK2006PLC002684

Company & Directors' Information:- S P T ENGINEERING PRIVATE LIMITED [Converted to LLP] CIN = U27109UP2005PTC030940

Company & Directors' Information:- A R F ENGINEERING LIMITED [Active] CIN = U27200TN1980PLC008347

Company & Directors' Information:- A M ENGINEERING PRIVATE LIMITED [Amalgamated] CIN = U65910MH1981PTC187856

Company & Directors' Information:- S. S. E. ENGINEERING PRIVATE LIMITED [Active] CIN = U36990MH2007PTC175320

Company & Directors' Information:- C T ENGINEERING LIMITED [Strike Off] CIN = U29259GJ1986PLC009007

Company & Directors' Information:- R AND S ENGINEERING INDIA PVT LTD [Active] CIN = U29199GJ1995PTC027661

Company & Directors' Information:- U AND R ENGINEERING PRIVATE LIMITED [Active] CIN = U29199TZ1999PTC009012

Company & Directors' Information:- I Q ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U85110KA1996PTC021507

Company & Directors' Information:- G M ENGINEERING PRIVATE LIMITED [Active] CIN = U28910GJ2013PTC077091

Company & Directors' Information:- W. E. ENGINEERING PVT. LTD. [Active] CIN = U52335WB1985PTC039370

Company & Directors' Information:- L. B. ENGINEERING PRIVATE LIMITED [Active] CIN = U74999WB2018PTC225084

Company & Directors' Information:- R I ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U74210KA1991PTC012420

Company & Directors' Information:- U D ENGINEERING PRIVATE LIMITED [Active] CIN = U32109DL1999PTC102586

Company & Directors' Information:- K M T S ENGINEERING PRIVATE LIMITED [Active] CIN = U29192DL2005PTC141240

Company & Directors' Information:- C A G ENGINEERING LIMITED [Active] CIN = U00350PB2006PLC029521

Company & Directors' Information:- C A G ENGINEERING LIMITED [Active] CIN = U29110PB2006PLC029521

Company & Directors' Information:- D ENGINEERING PRIVATE LIMITED [Active] CIN = U29269TZ1932PTC000046

Company & Directors' Information:- V K B ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL2005PTC141483

Company & Directors' Information:- INDIA ENGINEERING PRIVATE LIMITED [Active] CIN = U72200PN1999PTC014259

Company & Directors' Information:- C N C ENGINEERING LIMITED [Strike Off] CIN = U93000KA1986PLC007922

Company & Directors' Information:- M K V ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29199TZ1997PTC007736

Company & Directors' Information:- G V T ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U29219DL1996PTC082427

Company & Directors' Information:- K. I. ENGINEERING PRIVATE LIMITED [Active] CIN = U74999WB2009PTC133109

Company & Directors' Information:- G M E P ENGINEERING PRIVATE LIMITED [Active] CIN = U29192DL1998PTC096737

Company & Directors' Information:- J T ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL1984PTC018756

Company & Directors' Information:- M C ENGINEERING CO PVT LTD [Active] CIN = U74899DL1972PTC006392

Company & Directors' Information:- C P ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U27209TN1987PTC014052

Company & Directors' Information:- J B L ENGINEERING PRIVATE LIMITED [Active] CIN = U28112MP2008PTC021459

Company & Directors' Information:- H V S ENGINEERING PRIVATE LIMITED [Active] CIN = U28920MH2005PTC158342

Company & Directors' Information:- S C ENGINEERING CO PVT LTD [Active] CIN = U74210WB1982PTC035623

Company & Directors' Information:- U M ENGINEERING PRIVATE LIMITED [Active] CIN = U29200MH1977PTC019574

Company & Directors' Information:- A V K ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071971

Company & Directors' Information:- S K ENGINEERING CO PRIVATE LIMITED [Strike Off] CIN = U05001UP1952PTC002408

Company & Directors' Information:- G D ENGINEERING COMPANY (INDIA) PVT LTD [Active] CIN = U74210WB1993PTC058553

Company & Directors' Information:- V M R ENGINEERING PRIVATE LIMITED [Active] CIN = U29120DL2005PTC136764

Company & Directors' Information:- K. S. I. ENGINEERING PRIVATE LIMITED [Active] CIN = U36999HR2007PTC036660

Company & Directors' Information:- N S S ENGINEERING PRIVATE LIMITED [Active] CIN = U28999KA1989PTC010312

Company & Directors' Information:- A P V ENGINEERING CO LTD [Strike Off] CIN = U29113WB1945PLC006428

Company & Directors' Information:- G B ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29212PB1996PTC017500

Company & Directors' Information:- C M S ENGINEERING INDIA PRIVATE LIMITED [Strike Off] CIN = U74210TN2010PTC075302

Company & Directors' Information:- J K B ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U31300TN1996PTC036482

Company & Directors' Information:- T S C ENGINEERING PRIVATE LIMITED [Active] CIN = U70109DL2011PTC217251

Company & Directors' Information:- H T S ENGINEERING PRIVATE LIMITED [Active] CIN = U74999MH2008PTC187914

Company & Directors' Information:- T P ENGINEERING PRIVATE LIMITED [Active] CIN = U45201OR2010PTC011517

Company & Directors' Information:- UNION ENGINEERING PRIVATE LIMITED [Active] CIN = U74210KA1985PTC006829

Company & Directors' Information:- S B ENGINEERING PVT LTD [Active] CIN = U29199GJ1982PTC005292

Company & Directors' Information:- J J ENGINEERING PVT LTD [Active] CIN = U29219WB1986PTC041433

Company & Directors' Information:- D & L ENGINEERING PRIVATE LIMITED [Converted to LLP] CIN = U29113TN2004PTC052690

Company & Directors' Information:- H R P ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U31503MH1997PTC108621

Company & Directors' Information:- S H ENGINEERING PRIVATE LIMITED [Active] CIN = U70101WB1999PTC088930

Company & Directors' Information:- V K S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28133TN2005PTC057283

Company & Directors' Information:- M K ENGINEERING PVT LTD [Active] CIN = U29199GJ1995PTC027278

Company & Directors' Information:- K J ENGINEERING PRIVATE LIMITED [Active] CIN = U29299PN2006PTC129171

Company & Directors' Information:- C S S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45302TN2003PTC051161

Company & Directors' Information:- N. P. ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U31100WB2010PTC150609

Company & Directors' Information:- S R K ENGINEERING CO PVT LTD [Active] CIN = U67120WB1994PTC063442

Company & Directors' Information:- M P T ENGINEERING PVT LTD [Strike Off] CIN = U29299KL1994PTC007761

Company & Directors' Information:- T S R C ENGINEERING PRIVATE LIMITED [Active] CIN = U29100UP2020PTC133920

Company & Directors' Information:- A K ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U50300UP1981PTC005354

Company & Directors' Information:- H M T D ENGINEERING PVT LTD [Active] CIN = U99999MH1981PTC035175

Company & Directors' Information:- J P ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28129MH1972PTC015813

Company & Directors' Information:- V M ENGINEERING COMPANY PRIVATE LIMITED [Active] CIN = U28920MH1969PTC014224

Company & Directors' Information:- H M A ENGINEERING LIMITED [Strike Off] CIN = U45209PB2008PLC031777

Company & Directors' Information:- P T S ENGINEERING INDIA PRIVATE LIMITED [Active] CIN = U74210TZ2011PTC016944

Company & Directors' Information:- K S M ENGINEERING PRIVATE LIMITED [Active] CIN = U74210TG1997PTC028612

Company & Directors' Information:- M M ENGINEERING COMPANY PRIVATE LIMITED [Converted to LLP] CIN = U28932MH1979PTC021819

Company & Directors' Information:- N G T ENGINEERING PVT LTD [Active] CIN = U27109WB1968PTC027292

Company & Directors' Information:- M A S ENGINEERING PRIVATE LIMITED [Active] CIN = U99999MH1976PTC019233

Company & Directors' Information:- G R K ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U74200AP2011PTC076356

Company & Directors' Information:- P N S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29120TN2006PTC060120

Company & Directors' Information:- K P ENGINEERING CORPORATION PVT LTD [Strike Off] CIN = U74200WB1961PTC025258

Company & Directors' Information:- M A N INDIA ENGINEERING LTD [Strike Off] CIN = U74200WB1979PLC020893

Company & Directors' Information:- R V K ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29253TN2010PTC074505

Company & Directors' Information:- R K ENGINEERING COMPANY PVT LTD [Active] CIN = U74899DL1975PTC007743

Company & Directors' Information:- G S A ENGINEERING CORPN PVT LTD [Strike Off] CIN = U74210WB1957PTC023382

Company & Directors' Information:- A R M ENGINEERING PRIVATE LIMITED. [Strike Off] CIN = U00500JH1988PTC003057

Company & Directors' Information:- L & V ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45202MZ2005PTC007690

Company & Directors' Information:- S G A ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U29200MH2005PTC154349

Company & Directors' Information:- C P C ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29120TZ1986PTC001880

Company & Directors' Information:- P K R ENGINEERING INDIA PRIVATE LIMITED [Strike Off] CIN = U29130TZ2004PTC011094

Company & Directors' Information:- M N B ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U70101TN2005PTC057442

Company & Directors' Information:- R R K ENGINEERING PRIVATE LIMITED [Active] CIN = U74999WB2011PTC161080

Company & Directors' Information:- D M S ENGINEERING CO PVT LTD [Strike Off] CIN = U28920WB1964PTC026168

Company & Directors' Information:- S D S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28999PN2000PTC014838

Company & Directors' Information:- G B L ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U29130RJ1998PTC015182

Company & Directors' Information:- N T ENGINEERING COMPANY PVT LTD [Strike Off] CIN = U99999PY1986PTC000445

Company & Directors' Information:- R K ENGINEERING PRIVATE LIMITED [Active] CIN = U31100MH2005PTC152838

Company & Directors' Information:- V J S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29130TN1996PTC036636

Company & Directors' Information:- R. K. V. ENGINEERING PRIVATE LIMITED [Active] CIN = U29253MH2010PTC205237

Company & Directors' Information:- U S ENGINEERING PVT LTD [Active] CIN = U34300CH1986PTC006887

Company & Directors' Information:- A D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U74210OR1989PTC002348

Company & Directors' Information:- R J ENGINEERING COMPANY PRIVATE LIMITED [Active] CIN = U27107RJ1972PTC001441

Company & Directors' Information:- H F ENGINEERING PRIVATE LIMITED [Active] CIN = U29244KL2013PTC033909

Company & Directors' Information:- O N ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL1988PTC031987

Company & Directors' Information:- P S R ENGINEERING PVT LTD [Strike Off] CIN = U40200WB1987PTC042244

Company & Directors' Information:- P N ENGINEERING CO PVT LTD [Strike Off] CIN = U74210WB1980PTC032750

Company & Directors' Information:- A M A R ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29219DL1997PTC084187

Company & Directors' Information:- S G D ENGINEERING PRIVATE LIMITED [Active] CIN = U29210KA2009PTC050452

Company & Directors' Information:- G A S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29191MH2004PTC149606

Company & Directors' Information:- G T ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29219PN2012PTC145781

Company & Directors' Information:- M. M. K. ENGINEERING COMPANY PRIVATE LIMITED [Active] CIN = U29305MH2014PTC252830

Company & Directors' Information:- K-4 ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U31400MH2010PTC204004

Company & Directors' Information:- N J ENGINEERING PRIVATE LIMITED [Active] CIN = U45209MH2015PTC262607

Company & Directors' Information:- P R S ENGINEERING PRIVATE LIMITED [Active] CIN = U29253TN2009PTC073915

Company & Directors' Information:- U P S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U40300TN2013PTC090167

Company & Directors' Information:- K G D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45400WB2014PTC200732

Company & Directors' Information:- T A ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28992CH2003PTC025800

Company & Directors' Information:- M N A ENGINEERING PVT LTD [Strike Off] CIN = U45202CH2006PTC030215

Company & Directors' Information:- A A P ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U27106DL2005PTC138318

Company & Directors' Information:- A C ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29253DL2011PTC222515

Company & Directors' Information:- S. Z. ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29253DL2014PTC274095

Company & Directors' Information:- IN ENGINEERING PRIVATE LIMITED [Active] CIN = U74210DL2011PTC212284

Company & Directors' Information:- J N ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45400DL2015PTC278906

Company & Directors' Information:- N I ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45400DL2015PTC280734

Company & Directors' Information:- A N D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U51502DL2012PTC242516

Company & Directors' Information:- R R V ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U51909DL1997PTC089342

Company & Directors' Information:- Z. M. ENGINEERING PRIVATE LIMITED [Active] CIN = U51909DL2007PTC168270

Company & Directors' Information:- K Y ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U74999DL2013PTC248278

Company & Directors' Information:- R AND T ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U34300DL2005PTC136846

Company & Directors' Information:- THE ENGINEERING CORPORATION PRIVATE LIMITED [Strike Off] CIN = U99999KA1951PTC000699

Company & Directors' Information:- S J P ENGINEERING CO. PRIVATE LIMITED [Strike Off] CIN = U51505KA2002PTC030808

Company & Directors' Information:- S I ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U27109UP1967PTC003182

Company & Directors' Information:- W D ENGINEERING PRIVATE LIMITED [Active] CIN = U29308MH2020PTC345065

Company & Directors' Information:- S D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U18101DL1999PTC102948

Company & Directors' Information:- M B D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U74210DL2008PTC181446

Company & Directors' Information:- UNION COMPANY PRIVATE LIMITED [Dissolved] CIN = U99999KA1942PTC000292

Company & Directors' Information:- A. B. C. ENGINEERING CORPORATION LIMITED [Not available for efiling] CIN = U99999MH1950PLC008192

Company & Directors' Information:-  ENGINEERING COMPANY ( [Not Available for eFiling] CIN = U99999MH1951PLC010002

Company & Directors' Information:- F M P ENGINEERING PVT LTD [Strike Off] CIN = U29259GJ1965PTC001337

    Writ Petition (L) No. 5842 of 2020

    Decided On, 09 February 2021

    At, High Court of Judicature at Bombay

    By, THE HONOURABLE MR. JUSTICE UJJAL BHUYAN & THE HONOURABLE MR. JUSTICE MILIND N. JADHAV

    For the Petitioners: Saurabh Tapadia a/w. Mr. Manish Kelkar, Advocates. For the Respondents: R1 & R2, Pradeep S. Jetly, Senior Advocate a/w. J.B. Mishra, R3, Pralhad Paranjape, Advocates.



Judgment Text

Milind N. Jadhav, J.1. Heard learned counsel for the parties.2. By this petition filed under the provisions of Article 226 of the Constitution of India, petitioners have prayed for the following reliefs:“a) Quash and set aside impugned communication / order dated 27.09.2019 (Exhibit “H”) & 22.09.2020 (Exhibit “P”) issued by Respondent No.2 to the extent it provisionally attaches share of the Petitioner No.1 in the escrow account No.36030200000659 held in Respondent No.4 bank;b) By way of interim relief direct the Respondent No.4 to transfer 97% of the amount lying in escrow account No.36030200000659 to the account of the Petitioner No.1 as per instruction dated 25.07.2017 on such terms and conditions as may be deemed fit;c) Ad interim reliefs in terms of prayers (b);d) Cost of the petition be provided for;e) For such other and further reliefs, as the nature and circumstances of case may require;”3. Petitioners had initially challenged the provisional attachment order dated 27.09.2019 issued by the Commissioner of Central Goods and Services Tax and Central Excise, Mumbai i.e. respondent No.2 provisionally attaching escrow account No. 36030500000014 held in Bank of Baroda, Mahim Branch. Writ Petition was filed on 21.07.2020. This provisional attachment order automatically came to an end on the expiry of one year under the provisions of Section 83(2) of the Central Goods and Services Act, 2017 (for short “the CGST Act”). Respondent No.2 has issued fresh provisional attachment order dated 22.09.2020 of the said escrow account during the pendency of the writ petition which is now challenged by the petitioners. This account is jointly held by respondent No.3 and petitioner No.1.4. Before we advert to the submissions made by learned counsel for the parties, it will be apposite to refer to the relevant facts:4.1. Petitioner No.1 is a contractor engaged in construction activities. Pursuant to tender floated by the Maharashtra State Power Generation Company Limited (for short “MSPGCL”) for landscaping and plantation work at various locations at its Koradi Expansion Plant, respondent No.3 was declared as the successful bidder and issued work order dated 16.07.2016; permission was granted to respondent No.3 by MSPGCL on 16.03.2017 for subletting the contract to petitioner No.1; accordingly respondent No.3 appointed petitioner No.1 as sub contractor to carry out the work order awarded considering petitioner No.1's expertise in the said field; in this connection, Memorandum of Understanding (for short “MOU”) and Sub Contract Agreement both dated 15.03.2017 were between the parties.4.2. One of the essential conditions of the Sub Contract Agreement dated 15.03.2017 was that an escrow account shall be opened with a mutually agreed bank wherein MSPGCL shall transfer the amount pertaining to running account bills raised pursuant to the date of the work order awarded to respondent No.3; accordingly, joint escrow account No. 36030200000659 was opened in respondent No. 4 bank; Respondent No.3 was the first party whereas petitioner No.1 was the second party in the joint account. It was agreed that out of the deposits made in the escrow account, 3% shall be transferred to respondent No.3 and 97% shall be transferred to petitioner No. 1; accordingly standing instructions to that effect were given to respondent No. 4 Bank.4.3. MSPGCL credited the amount of the running bills raised by respondent No.3 in the joint escrow account and the amount was apportioned in the ratio of 3% and 97% as per standing instructions given to the respondent No.4 bank.4.4. On 23.01.2020, MSPGCL credited an amount of Rs.81,96,823.00 in the escrow account towards the 12th running account (RA) bill. Petitioner No.1 was entitled to 97% out of this receipt and therefore by letter dated 29.01.2020 informed the bank to transfer the amount to the petitioner No.1's account. On 03.02.2020 petitioner No.1 received a reply from the bank that the escrow account was blocked due to debit freeze instructions received from respondent No.2 in view of legal proceedings initiated by respondent No.2 against respondent No.3. It appears that the said escrow account was provisionally attached under instructions of respondent No. 2 dated 27.09.2019. Respondent No. 4 bank by letter dated 27.02.2020 informed respondent No.2 that 97% share out of the receipts in the escrow account was for disbursement to the petitioner No.1 in view of the contractual obligation between the parties and standing instructions given to the bank. Simultaneously respondent No.3 also informed the bank to release the share (97%) of respondent No.1 out of the receipts received in the escrow account.4.5. Since the petitioners did not receive the amount, present petition was filed on 03.07.2020 to challenge the provisional attachment order dated 27.09.2019.5. As almost one year had elapsed since passing of the provisional attachment order dated 27.09.2019, fresh provisional attachment order dated 22.09.2020 was passed by respondent No. 2 in respect of the said escrow account.5.1 In view of the aforesaid development, the writ petition was amended subsequently to challenge the fresh provisional attachment order dated 22.09.2020 in respect of the escrow account to the extent of the share of petitioner No.1.6. Mr.Abhinav Kumar, Deputy Commissioner of Central Goods and Services Tax, Mumbai Central Commissionerate has filed reply affidavit on behalf of respondent Nos.1 and 2. Stand taken in the affidavit is that there is no cause of action for the petitioners to file the writ petition as no action has been taken by the answering respondents against the petitioners. Enquiry has been initiated against respondent No.3 and on being satisfied the proper officer has attached the bank account of respondent No.3. Petitioners’ contention that it has an agreement with respondent No.3, whereunder they have 97% share in the said account cannot be agitated in a writ proceeding. Reference has been made to section 83 of the Central Goods and Services Tax Act, 2017, whereafter impugned action has been justified. Contention of respondent Nos.1 and 2 is that the dispute is between the petitioners and respondent No.3. Therefore, answering respondents have no role to play.6.1. Respondent No.3 has defrauded the government exchequer. Therefore, impugned steps have been taken to safeguard government revenue.6.2. Referring to section 83(2) of the CGST Act it is stated that every provisional attachment made under sub-section (1) shall cease to have effect after expiry of one year from the date of the order made under sub-section (1). Department is well within its right to issue a fresh order for provisional attachment. Since there is no provision barring the authority from issuing a fresh order upon completion of the period of one year, it is contended that on expiry of the period of one year if the appropriate authority is of the opinion that such an attachment is further required to protect the interest of government revenue, it may issue a fresh order subject to compliance of the requirement of section 83(1) of the CGST Act.7. Petitioners have filed rejoinder affidavit to the reply affidavit filed by respondent Nos.1 and 2. It is stated that in view of admission by respondent Nos.1 and 2 that no action has been taken against the petitioners nor any action contemplated, there should be no imperilment for respondent No.4 to release the money of the petitioners lying with the escrow account.8. A reply affidavit has been filed on behalf of respondent No.3. While stating that no relief has been sought for by the petitioners against respondent No.3, however, allegations made by respondent Nos.1 and 2 in their reply affidavit against respondent No.3 have been denied. It is stated that respondent No.3 has cooperated with the investigation carried out by respondent Nos.1 and 2.9. Mr. Saurabh Tapadia, learned counsel appearing for the petitioners submitted that the escrow account was attached under the provisions of Section 83 of the CGST Act due to proceedings initiated against respondent No.3; such provisional attachment of escrow account under Section 83 can be exercised only if any proceedings referable to sections 62, 63, 64, 67, 73 and 74 of the CGST Act have been initiated against the taxable person. He submitted that in the present case no such proceedings were initiated against petitioner No.1; Proceedings, if any, were initiated against respondent No.3; Escrow account being a joint account held by respondent No.3 and petitioner No.1 could not be attached to the extent of the petitioner No1's share in view of standing instructions given to the bank on 25.07.2017 that the bank was required to remit 97% of the amount received in the escrow account to the account of petitioner No.1 and 3% to the account of respondent No.3; at the highest 3% of the receipts in the escrow account as belonging to respondent No.3 could be attached; there was no direct nexus nor privity of contract between petitioner No.1 and the MSPGCL in so far as contractual obligation was concerned. He further submitted that petitioner No.1 was permitted to be appointed as a sub-contractor by MSPGCL and as per the MOU and Sub Contract Agreement, both dated 15.03.2020, liability to pay taxes was on the respondent No.3 and in view thereof attachment of the petitioner No.1’s share in the escrow account is arbitrary, illegally and high handed. Accordig to him, there was no inquiry contemplated against petitioner No.1 under the provisions of the CGST Act, neither any inquiry was initiated nor is pending; petitioner No.1 is the pre-dominant beneficiary of the escrow account; under the provisions of Section 83 provisional attachment can be made at the maximum for a period of one year only; therefore, the fresh provisional attachment order dated 22.09.2020 continuing the attachment without any proceedings intiated against the petitioner No.1 is extremely high handed; Petitioners have filed objections dated 09.10.2020 under Rule 159(5) of the Central Goods and Services Tax Rules, 2017 (for short “the CGST Rules”) to the fresh provisional attachment order dated 22.09.2020; however, no decision has been taken. Petitioners require the funds to carry on its business and more importantly the remittance in the escrow account pertains to 12th running account bill, work for which has been completed by petitioner No.1 and there can by no reason / justification for withholding / attaching petitioner No.1's share of Rs.79,50,918.00 to the extent of 97%.10. PER CONTRA, Mr. Pradeep Jetly, learned Senior Counsel appearing for respondent Nos.1 and 2 has contended that attachment of the escrow account was in accordance with law and the writ court should not take cognizance of the private agreement between petitioner No.1 and respondent No.3; investigation against respondent No.3 i.e. M/s. Creative Business Associates is under progress; action of attachment of escrow account which stands in the first name of respondent No.3 is maintainable; respondent No.3 has provided the escrow account for GST registration and the impugned action is justified and carried out correctly in the prescribed format of FORM GST DRC 22 in order to safeguard government revenue; plea of the petitioners cannot be countenanced; respondent No.3 has not cooperated in the investigation; modus operandi of respondent No.3 to evade tax and to cause loss to the government exchequer is systematically planned; and that the lis in the petition solely pertains to breach of trust between petitioner No.1 and respondent No.3 without involving the government department. He submitted that the fresh order of provisional attachment dated 22.09.2020 has been correctly passed in view of the on going investigation in order to protect the interest of government revenue after the expiry of the period of one year from the date of the first order.11. Mr. Paranjape, learned counsel for respondent No. 3 while supporting the contentions advanced by learned counsel for the petitioners, however submits that respondent No. 3 is cooperating with the investigation carried out by respondent Nos. 1 and 2.12. Submissions made by learned counsel for the parties have been duly considered. Materials on record have also been perused.13. Before we advert to the submissions made by the learned counsel for the respective parties, we may briefly refer to the relevant provisions of the CGST Act.14. Section 83 of the CGST Act confers power upon the authority to make provisional attachment in certain cases. Section 83 of the CGST Act reads thus:-“83. Provisional attachment to protect revenue in certain cases.(1) Where during the pendency of any proceedings under Section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed.(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).”15. From the above it is discernible that such power can be exercised only if any proceedings under mentioned provisions of the act have been initiated against the taxable person. In the present case, the 'taxable person' is respondent No.3 and it appears that proceedings under the CGST Act have been initiated against the said respondent. As part of the said proceedings, the escrow account which stood in the joint names of respondent No.3 being the first holder and petitioner No.1 (second holder) was provisionally attached vide order dated 27.09.2019. Petitioners have pleaded that since no proceedings have been contemplated and / or initiated under any of aforesaid provisions of the CGST Act against petitioners, the provisional attachment of the escrow account to the extent of 97% of the receipts received in the account belonging to the petitioners is not justified and is ex-facie arbitrary.16. It is an admitted position that proceedings under the provisions of Section 74 of the CGST Act have been initiated against respondent No.3 only. It is pertinent to note that the first provisional attachment order dated 27.09.2019 issued to respondent No.3 reads thus:“It is to inform that M/s Creative Business Associates having Principal place of business at A 11 / 12, Shree Ganesh Apartment, Opp. Shitaladevi Temple, L.J. Road, Mahim, Mumbai – 400 016 bearing GST Registration No.27AAFFC4843GIZI, PAN Number AAFFC4843G, is a registered taxable person under the CGST Act, 2017, Proceedings have been launched against aforesaid taxable person under Section 74 of CGST Act, 2017 to determine the tax or any other amount due from the said person. As per information available with the department, it has come to my notice that the said person has a Account in your bank having Account No.36030500000014.In order to protect the interests of the revenue and in exercise of the powers conferred under Section 83 read with Rule 159(1) of CGST Act, 2017, I Shri. Rajesh Sanan, Commissioner CGST & Central Excise, Mumbai Central hereby provisionally attach the aforesaid account.No debit shall be made from the said account or any other account operated by the aforesaid person on the same PAN without the prior permission of this department.”16.1. The provisional attachment order states that M/s Creative Business Associates i.e. respondent No.3 having GST registration No. No.27AAFFC4843GIZI is a registered taxable person under the CGST Act and proceedings have been launched under Section 74 of the CGST Act to determine the tax and any amount due in order to protect the interest of the revenue. Therefore bank account No. 36030500000014 was provisionally attached under Section 83 of the CGST Act read with Rule 159(1) of the CGST Rules. However it is also imperative to note that account No.36030500000014 is an escrow account in respect of which standing instruction were given by respondent No.3 to respondent No.4 bank on 25.07.2017 that out of the total receipts received in the said account the share of respondent No.3 would be 3% only; the balance 97% would have to be transferred to the petitioner No.1's account.17. The fresh provisional attachment order has been issued on 22.09.2020 since the first provisional attachment order dated 27.09.2019 would cease to operate beyond the period of one year in view of the provision of Sub Section (2) of Section 83 of the CGST Act. To this the petitioners have filed their statutory objections dated 09.10.2020 as contemplated under the sub-Rule (5) of Rule 159 of the CGST Rules. It is pertinent to note that the petitioners were never served with both the attachment orders dated 27.09.2019 and 22.09.2020. Petitioners learnt about the same from respondent No.4 bank when the share of petitioner No.1 (97%) was not transferred from the escrow account.18. Though at the first glance an impression was created that the lis pertains to a contractual dispute between the petitioners on the one hand and respondent No.3 on the other hand, but on a closer scrutiny we find that the rights of the petitioners have adversely affected by action taken by respondent Nos.1 and 2 against respondent No.3. This position is made abundantly clear by respondent Nos.1 and 2 in the reply affidavit by stating that no action was taken or contemplated against the petitioners. Petitioners being adversely affected by action of respondent Nos. 1 and 2 taken against respondent No.3, has a legitimate grievance which needs to be redressed.19. It is an undisputed and admitted position that in view of the contractual arrangement between respondent No.3 and petitioner No.1, the receipts received in the escrow account belonged to the respective parties in the proportion as agreed upon by the parties. These receipts have been in respect of the amounts deposited by the MSPGCL into the escrow account pertaining to the running account (RA) bills of the work done / completed. In the past, receipts of amounts pertaining to 11 RA bills had been apportioned in the agreed manner. The receipt of amounts pertaining to the 12th RA bill into the escrow account has been provisionally attached due to proceedings initiated against respondent No.3 by respondent Nos. 1 and 2. Since respondent No. 3 has not raised any grievance, we may not go into the proceedings initiated under the provisions of Section 74 of the CG

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ST Act against respondent No.3 in the present petition.20. However in the given facts, case of the petitioners, needs to be considered as admittedly petitioner No. 1 is not the taxable person. Petitioners have filed their statutory objections under Rule 159(5) of the CGST Rules in response to the fresh provisional attachment order dated 22.09.2020 before respondent No.2. Respondent No.2 shall give a hearing to the petitioners and decide their objections in accordance with the provisions of the CGST Act and the CGST Rules. Considering the admitted fact that no proceedings have been initiated against the petitioners and no inquiry has been contemplated against the petitioners under the provisions of the CGST Act, we direct that until decision is taken on the objection filed by the petitioners by respondent No.2, petitioner No.1 shall maintain a balance of Rs. 5,00,000.00 in the escrow account out of the share belonging to the petitioner No.1. In effect, we lift the provisional attachment in so far as petitioner No. 1’s share in the escrow account is concerned subject to maintaining credit balance of Rs. 5,00,000.00 by petitioner No. 1 out of its share and direct that respondent No.4 would be at liberty to transfer / remit the proportionate amount due to petitioner No. 1 to the account of petitioner No.1 and maintain balance of Rs. 5,00,000.00 till the aforementioned decision is taken.21. Needless to state remaining 3% share belonging to respondent No.3 in the escrow account shall continue to remain attached in terms of the provisional attachment order dated 22.09.2020. We further direct respondent No.2 to consider the objections dated 09.10.2020 filed by the petitioner No.1 as being validly filed under the provisions of Rule 159(5) of the CGST Rules and dispose of the same in accordance with law, maintaining of balance of Rs. 5,00,000.00 by petitioner No. 1 in the escrow account shall be subject to outcome of such decision.22. Writ petition stands disposed of in terms of the above directions. However, there shall be no order as to costs.
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