2018 (12) TMI 1578 – GUJARAT HIGH COURT – TMI – Validity of attachment order – petitioner could not discharge its GST liabilities for the past several months – According to the petitioner, since it was unable to pay the tax, the Returns could not be filed. – Held that:- The petitioner can restart its manufacturing activities and start repaying the Government dues. In this context, few things become relevant. Firstly, according to the petitioner, the outstanding dues are in the vicinity of ₹ 64.00 Lacs. This does not account for possible interest or penalty or late payment charges. The petitioner must clear the dues as soon as possible. The petitioner, having collected such taxes, would not get any sympathy from us, if the unpaid taxes are not deposited in the Government revenue – The petitioner shall place before the respondent authorities material regarding its purchases and clearances in order to enable the authority to form the best judgment assessment, if so found necessary.
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plant. The petitioner is in the business of manufacturing agrochemicals. 3. The facts admitted by the petitioner are that the petitioner could not discharge its GST liabilities for the past several months. According to the petitioner, tax of ₹ 97.00 Lacs was collected but, could not be deposited with the Government on account of severe financial crisis. Out of such amount, the petitioner has, by now, paid about ₹ 33.00 Lacs, leaving a residue of about ₹ 64.00 Lacs. According to the petitioner, since it was unable to pay the tax, the Returns could not be filed. 4. The GST authorities, therefore, in exercise of powers under Section 83 of the Gujarat Goods and Service Tax Act, 2017 passed the impugned order attaching the petitioner s plant, machinery and stock. 5. Learned counsel for the petitioner submitted that it was on account of acute financial crisis resulting out of the meltdown conditions in the market that the petitioner could not deposit the tax. The order pass
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things become relevant. Firstly, according to the petitioner, the outstanding dues are in the vicinity of ₹ 64.00 Lacs. This does not account for possible interest or penalty or late payment charges. The petitioner must clear the dues as soon as possible. The petitioner, having collected such taxes, would not get any sympathy from us, if the unpaid taxes are not deposited in the Government revenue. Learned AGP may also be correct in pointing out that the figures of unpaid taxes are based on the petitioner s selfassessment and this would be subject to verification. The law permits the authorities to carry out best judgment assessment in case the Returns are not filed. The petitioner shall place before the respondent authorities material regarding its purchases and clearances in order to enable the authority to form the best judgment assessment, if so found necessary. All these procedures can continue. 8. In the meantime, however, subject to certain strict conditions, we would perm
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