2019 (2) TMI 741 – GUJARAT HIGH COURT – TMI – Validity of provisional attachment – section 83 of the Central Goods and Services Tax Act, 2017 – various hardships were caused to the petitioner – Held that:- Section 83 of the CGST Act provides for provisional attachment to protect revenue in certain cases and inter-alia, provides that where during the pendency of any proceeding under section 67, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing, attach provisionally any property, including bank account belonging to the taxable person in such manner as may be prescribed. Thus, the object of the provision is to protect the interest of the Government revenue.
–
In the facts of the present case, attachment of the bank accounts of the petitioner has resulted into various hardships to the petitioner which would adversely affect its business and which may result in loss of rev
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d to the controversy involved in the present petition, which lies in a very narrow compass, with the consent of the learned advocates for the respective parties, the same was taken up for hearing. 3. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the order of provisional attachment dated 15.5.2018 passed by the respondent No.2 in exercise of powers under section 83 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act) whereby the bank account of the petitioner bearing No.200020110000901 maintained with the Bank of India, Ahmedabad Main, Bhadra has been ordered to be attached. It is the case of the petitioner that pursuant to the said order, not only the above bank account has been attached but eight bank accounts maintained by the petitioner with different banks as enlisted at Annexure-C to the petition have been attached. 4. Mr. Zubin Bharda, learned advocate for the petitioner has submitted that the p
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ner has, therefore, requested the respondents to permit the petitioner to pay the central excise dues in installments; however, there is no response thereto. It was submitted that as the respondents have attached the bank accounts maintained by the petitioner, the petitioner is not able to deposit the employees' provident fund as required to be deposited with the office of Employees Provident Fund Organisation in respect of which a show cause notice has been issued to the petitioner. It is further pointed out that the Bank of India has also issued a notice dated 2.1.2019 calling upon the petitioner to make interest payment which is overdue, failing which its account shall by classified as Non Performing Asset. It was submitted that on account of the attachment over the bank accounts, the petitioner is unable to run its day-to-day affairs smoothly, which is adversely affecting its business. It was urged that the petitioner is not denying its liability to pay the central excise dues
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
er had vide letter dated 29.5.2018 committed to pay ₹ 25,00,000/- every month towards the central excise liability; however despite giving assurance, the petitioner had failed to do so and, therefore, the attachment over the bank accounts of the petitioner could not be lifted. It was, accordingly, urged that the respondent having exercised powers under section 83 of the CGST Act in accordance with law, there is no warrant for intervention by this court. 6. Section 83 of the CGST Act provides for provisional attachment to protect revenue in certain cases and inter-alia, provides that where during the pendency of any proceeding under section 67, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing, attach provisionally any property, including bank account belonging to the taxable person in such manner as may be prescribed. Thus, the object of the provision is to protect th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
bove, the petition partly succeeds and is, accordingly, allowed to the following extent: The respondents are directed to forthwith release the attachment over the following bank accounts of the petitioner:- Sr. No. Bank Branch Account No. Type 1 Bank of India Main Branch, Bhadra, Ahmedabad 200030100170219 Cash Credit 2. Bank of India Main Branch, Bhadra, Ahmedabad 200020110000901 Current 3. Bank of Baroda Vatva I.E. 15960200000442 Current 4. HDFC Bank Ltd. Vatva i.e. 50200005903692 Current 5. ICICI Bank Ltd. Vatva i.e. 231205500050 Current 6. ICICI Bank Ltd. Vatva i.e. 231205500050 Current 6. AXIS Bank Ltd. Vastral BR. 914020036149120 Current 7. State Bank of India Ex. Highway Jn. Br. 34752992814 Current 8. Kotak Bank Ghantakarna Market 500011048318 Current The petitioner shall furnish a bank guarantee for a sum of ₹ 55,00,000/- to the second respondent within a period of one month from today. The petitioner shall also file an undertaking before this court within a period of one
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =