Authority: Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh)

Order Date: 03 September 2026

Case Overview

  • Petitioner: Gayatri Projects Limited, engaged in infrastructure, power and hospitality projects, registered under CGST Act 2017 and Mizoram GST Act 2017.
  • Respondents: Union of India and various tax officials (Commissioner, Additional Director, Joint Commissioner, Commissioner (Appeals), Assistant Commissioner, State of Mizoram, Commissioner of State Tax).
  • A Show Cause Notice under Section 74 CGST Act was issued on 31 May 2022 for assessment years 2017‑18 and 2018‑19.
  • Insolvency proceedings under Section 7 IBC were initiated; NCLT Hyderabad admitted the case on 15 November 2022 and imposed a moratorium under Section 14 IBC.
  • During the moratorium, Respondent No. 4 issued Order‑in‑Original No. 13/24‑25 on 3 February 2025 confirming the tax demand; summary issued in FORM GST DRC‑07 on 4 February 2025.
  • Petitioner filed two statutory appeals in FORM GST APL‑01 on 3 June 2025 but could not make the mandatory 10% pre‑deposit under Section 107(6) CGST because of the moratorium.
  • Moratorium was withdrawn on 10 September 2025 after a settlement with the financial creditor.
  • On 23 June 2026 Respondent No. 6 issued FORM GST DRC‑13 freezing the petitioner’s bank account.
  • Petitioner deposited Rs 84,30,760 (10% of the disputed tax) on 16 July 2026 and, via emails dated 10, 18 and 31 July 2026, requested the freeze be revoked.
  • Counsel for the respondent indicated that if the deposit was made, Section 107(7) CGST deems the proceeding stayed and the appeal should be allowed to proceed to conclusion.
  • Petitioner’s counsel urged that the pending appeal before the Commissioner (Appeals), CGST, Guwahati be disposed of expeditiously.

Final Outcome

  • The writ petition is disposed of with the observation that the pending appeal be disposed of by Respondent No. 5 (Commissioner (Appeals)) expeditiously and in accordance with law.
  • Recovery proceedings shall not be affected; the respondent authority may verify the Rs 84,30,760 deposit.
  • Upon verification, the authority shall instruct banks to defreeze the petitioner’s account within seven (7) days of receiving a certified copy of this order.
  • Any interim order previously passed is vacated.

Topics: GST Appeal, Bank Account Attachment