IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 17.11.2025 CORAM :

THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P.No . 32063 of 202 5 M/s.Guntupalli Marble and Granites Represented by its Partner Guntupalli Venugopala Rao. ... Petitioner Vs.

1.The Assistant Commissioner of GST & C.Ex Sholinganallur Division, South Commissionerate, 692, M.H.U.Complex, Nandanam, Chennai – 600 035.

2.The Principal Director General DGGI, No.16, Greams Road, BSNL Building, Tower II, VII Floor, Chennai – 600 006.

3.The Branch Manager, IDBI Bank, Neelankarai Branch, Plot No.2, 1st Main Road, Raja Nagar, Tamil Nadu – 600 041.

4.The Branch Manager, Kotak Mahindra Bank, Nasik Thatte Nagar Road Branch, Shop No.1, Payas, Opp. B.Y.K.College, Thatte Nagar Road, Nasik, Maharashtra. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus, to call for the records in the file of the First Respondent and quash the Impugned Letter dated 06.05.2025 bearing Reference No.GEXCOM/TECH/MISC/1152/2025 passed by the First Respondent and direct the First Respondent to give no objection certificate for release the Bank Guarantee.

For Petitioner : Mr.N.V.Balaji For Respondents : Mr.Rajnish Pathiyil Senior Standing Counsel for R1 and R2

ORDER

The Petitioner has challenged the communication dated 06.05.2025 issued by the 1^st Respondent, whereby, the request of the Petitioner to release the Bank Guarantee issued by the Petitioner on 29.01.2024 has been rejected.

2. Facts on record reveal that earlier the Petitioner’s bank account was attached in the background of search and siezure proceedings conducted by the

2^nd Respondent under Section 67 of the CGST Act, 2017 on 03.05.2023.

3. A Notice in GSTR 22 of provisional attachment of the Petitioner’s bank account was made on 01.11.2023. Prior to the provisional attachment Notice issued on 01.11.2023, the Petitioner appears to have voluntarily paid Rs.2,55,00,000/- [Rs.1,27,50,000/- under CGST and SGST each) under protest in DRC – 03 on various dates.

4. Under these circumstances, the Petitioner approached this Court in W.P.No.35712 of 2022 challenging the provisional attachment order dated 01.11.2023. This Court vide order dated 21.12.2023 disposed of the Writ Petition with the following observations:-

6.In view of the above submissions made on both sides, this Court passed the following order:-

(i) As far as the petitioner’s bank account in IDBI Bank, Neelankarai Branch is concerned, the petitioner is permitted to operate the said bank account only for the purpose of payment of GST alone. Therefore, to that extent, the provisional attachment order is ordered to be lifted.

(ii) As far as the petitioner’s bank account in Kotak Mahindra Bank, Nasik Thatte Nagar Road Branch is concerned, subject to the Petitioner furnishing of the bank guarantee to an extent of sum of Rs.5.7 corores, the attachment order is ordered to be lifted.

(iii) with regard to operation of IDBI Bank account is concerned, the petitioner is directed to remit a sum of Rs.50,00,000/- out of the balance in IDBI Bank Account with regard to pending GST dues against which the proceedings are pending within a period of two weeks from the date of receipt of a copy of this order.

6.1. Further, this Court directs the respective Banks to follow the above order of this Court in a scrupulous manner and see that this order has been duly complied with.

7.With the above directions, this writ petition stands disposed of. No costs. Consequently, connected miscellaneous petition is closed.

5. Pursuant to the order dated 21.12.2023 of this Court, the Petitioner furnished a bank guarantee on 29.01.2024 for a sum of Rs.5.7 crores from Kotak Mahindra Bank. The bank guarantee which was furnished by the Petitioner pursuant to the order of this Court was valid upto 18.01.2025.

Relevant clause from the said bank guarantee reads as under:-

(ii)This Guarantee shall be valid upto 18^th Jan 2025 (being the date of expiry date of the