Commercial tax order vs bank gold loan of customer


My query is a commercial tax notice is received by a bank for attachment of customers account. But the account has partial amount not full amount to the extent of tax notice. Bank has marked no debit to the account and informed the customer and tax authority regarding the same. Customer had gold loan with the bank, as he was amount due to the bank for gold loan bank accepted credit to the account and closed the gold loan. After that bank remitted the partial amount present in the customers account to CTO. Is this process followed by the bank is correct or it had asked the customer to first pay the amount to the extent of tax notice then only bank can close the gold loan. Kindly clarify
 
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Retired employee.

The procedure followed by the Bank is legal and proper as per laid down procedure.

There is no relationship in betweeen a pledge of gold jewels loan and dues to Government.

The bank has to obey the statutory stipulations and must remit the amount to tax authorities as per obligations.

They have enough security for the loan outstanding as it is secured by Gold jewels which can be auctioned without going to court, in case of default.

 

 
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Bank need not ask you to pay the amount as they received an order from Tax Authorities. The procedure followed by the Bank is perfect. 

 
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