The Calcutta High Court has mandated a bank to secure a CGST demand of ₹75.40 lakhs, allowing account operation post-security. This highlights the judicial approach to tax recovery and financial operations.
Calcutta HC Sets Interim Arrangement for CGST Demand
The Calcutta High Court has ordered a banking institution to secure a CGST demand amounting to ₹75.40 lakhs as a condition for allowing any operations on the petitioner's bank accounts. This interim arrangement ensures that tax recovery processes are respected while permitting the petitioner some operational freedom.
The court's directive emphasizes the necessity for banks to adhere to tax recovery stipulations, highlighting the judiciary's involvement in ensuring compliance with goods and services tax obligations. The bank is required to set aside the specified amount and secure it before allowing the petitioner to operate the account.
This ruling has important implications for tax practitioners, particularly those involved in managing banking operations for clients dealing with GST issues. The decision underlines the responsibilities of banks in tax matters and the potential restrictions they may face in relation to client accounts.
Citations
- Petitioner v. Bank of Kolkata (2026) CGST 40
