2018 (10) TMI 1454 – GUJARAT HIGH COURT – [2019] 61 G S.T.R. 141 (Guj) – Validity of provisional orders of attachment – attachment of petitioner's factory premises, stock and bank accounts – alleged large scale bogus billing activities – Held that:- At the prima facie stage, the department contends strongly that the petitioner has indulged into revenue defalcation. Possible tax and penalty liabilities are substantial. At the same time, it is not disputed that the petitioner is also involved in legitimate business activities. By freezing the petitioner's bank accounts and attaching the properties, the petitioner is temporarily rendered penalized. The petitioner cannot operate the business, cannot move the stock and cannot make payments.
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Provisional attachments suspended subject to fulfillment of certain conditions – petition disposed off. – R/SPECIAL CIVIL APPLICATION NO. 14566 of 2018 With R/SPECIAL CIVIL APPLICATION NO. 14567 of 2018 Dated:- 26-10-2018 – MR AKIL KURESHI AND M
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the petitioner's possible tax and penalty liabilities under the Gujarat Goods & Service Tax Act and Central Goods & Service Tax Act at close to ₹ 45 crores. 2. Counsel for the petitioner submitted that the petitioner has been in business since several years. In the past, no such allegation had been made. Statements of the director of the petitioner and other persons were recorded under duress. The petitioner has not indulged any bogus billing activity. The department has attached the petitioner's bank accounts, premises and stock thereby making it impossible for the petitioner to operate its business. The goods attached are perishable in nature. On some reasonable conditions, attachment should be suspended. 3. On the other hand, learned AGP explained the modes operandi allegedly employed by the petitioner for defrauding the Government revenue. He submitted that there is reliable material on record to establish such allegation. Pending assessment, the competent au
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then, the petitioner's financial liabilities would not be crystallized; (iii) The petitioner's stock worth ₹ 1.2 crores (approximately) is seized which is perishable in nature; (iii) At the instance of the department, the petitioner has deposited a sum of ₹ 2 crores in the petitioner's ledger account in terms of section 49 of the Gujarat Goods & Service Tax Act. Such amount would be available with the department for recovery in case the liabilities of the petitioner are crystallized; (iv) The petitioner concedes that the factory premises with plant and machinery are not encumbered. The same would therefore be poor security for any possible tax collection. 6. Under the circumstances, we would permit the petitioner to carry on the legitimate business by suspending provisional attachments subject to fulfillment of following conditions: (i) The petitioner creates an undertaking to maintain a stock of the goods of a minimum of ₹ 5 crores. Such undertaking s
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