Page 84 - GSTL_16th July 2020_Vol. 38_Part 3

322 GST LAW TIMES [ Vol. 38
16. With the aforesaid observations, the present writ petitions stand
allowed.

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2020 (38) G.S.T.L. 322 (Ker.)
IN THE HIGH COURT OF KERALA AT ERNAKULAM

Devan Ramachandran, J.
MUNICIPAL SECRETARY, MAVELIKARA MUNICIPALITY,
MAVELIKARA

Versus
STATE OF KERALA
W.P. (C) No. 14749 of 2018 (P), decided on 27-4-2018
Municipality’s Bank Account - Freezing thereof by GST Authorities
not sustainable - Since municipality is engaged in several activities that
involve general public, not proper for said authorities to freeze Bank account -
Impugned order set aside - Bank shall permit operation of Municipality’s
bank account as is routinely done - Section 78 of Central Goods and Services
Tax Act, 2017 - Article 226 of Constitution of India. [paras 2, 3]
Petition allowed
REPRESENTED BY : S/Shri Sukumar Nainan Oommen, Sherry Samuel
Oommen, Rahul Ipe and Asher Revi Job, Advocates,
for the Petitioner.
[Order]. - The petitioner has brought to the notice of this Court that as
per Ext.P9 order, the Deputy Commissioner of Central GST & Central Excise has
ordered the bank accounts maintained by the Municipality, in the fourth re-
spondent-bank, be frozen. The Learned Counsel says that this has put the Munic-
ipality in a great amount of prejudice and that they are even unable to go on with
their most essential and unexpendable activities. He, therefore, prays that Ext. P9
be stayed to the extent to which the accounts of the Municipality are ordered to
be frozen.
2. I find considerable force in the submissions of the Learned Counsel
for the petitioner and therefore, even though the Learned Standing Counsel for
the respondents vehemently objects to this prayer, I am of the firm view that it is
not proper to allow the respondents to freeze the accounts of the Municipality
specially when the Municipality is engaged in several activities that involve the
general public.
3. In such circumstances, I stay Ext. P9 to the extent to which the Depu-
ty Commissioner has ordered that the accounts of the Municipality, with the
fourth respondent bank, be frozen. Consequently, the fourth respondent will
permit the operation of the accounts by the Municipality as is routinely done
without in any manner being governed by Ext. P9 order.
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GST LAW TIMES  16th July 2020  84