M\/s. KHUSHIYA INDUSTRIES PVT. LTD. Versus STATE OF GUJARAT
GST
2018 (10) TMI 1454 – GUJARAT HIGH COURT – [2019] 61 G S.T.R. 141 (Guj)
GUJARAT HIGH COURT – HC
Dated:- 26-10-2018
R\/SPECIAL CIVIL APPLICATION NO. 14566 of 2018 With R\/SPECIAL CIVIL APPLICATION NO. 14567 of 2018
GST
MR AKIL KURESHI AND MR UMESH TRIVEDI, JJ.
\nFor The Petitioner : MR SIRAJ R GORI (2298) AND MR VARIS V ISANI (3858)
\nFor The Respondent : MR PRANAV TRIVEDI, AGP
\nORAL ORDER
\n(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
\n1. These petitions are filed for challenging provisional orders of attachment passed by the respondent authorities attaching the petitioner's factory premises, stock and bank accounts. The facts behind such action of the respondents are that the petitioner-a Private Limited Company is engaged in manufacture and trading in caster oil and related products. The premises of the petitioner and other entities in the same business were raided. During the period between 27.06.2018<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n me reasonable conditions, attachment should be suspended. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ollection. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" M\/s. KHUSHIYA INDUSTRIES PVT. LTD. Versus STATE OF GUJARATGST2018 (10) TMI 1454 – GUJARAT HIGH COURT – [2019] 61 G S.T.R. 141 (Guj)GUJARAT HIGH COURT – HCDated:- 26-10-2018R\/SPECIAL CIVIL APPLICATION NO. 14566 of 2018 With R\/SPECIAL CIVIL APPLICATION NO. 14567 of 2018 GSTMR AKIL KURESHI AND MR UMESH TRIVEDI, JJ. For The Petitioner : MR … Continue reading “M\/s. KHUSHIYA INDUSTRIES PVT. LTD. Versus STATE OF GUJARAT”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14701","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14701"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14701\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n3. 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 authority passed the order of provisional attachment to protect the interest of the Revenue.
\n4. In facts of the case, we have to balance the interest of both sides. 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. On reasonable ter<\/p>\n
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\n6. Under the circumstances, we would permit the petitioner to carry on the legitimate business by suspending provisional attachments subject to fulfillment of following conditions:
\n (i) The petitioner creates an undertaking to maintain a stock of the goods of a minimum of Rs. 5 crores. Such undertaking shall be filed before the department as well as before this Court by 15.11.2018;
\n (ii) The petitioner give unconditional bank guarantee to the department to the tune of Rs. 5 crores. For this limited purpose of enabling the petitioner to create stock and give bank guarantee, it would be open for the petitioner to receive payments from its dealers. The director of the petitioner will file undertaking before this Court latest by 30.10.2018 that such payments will not be utilized for any purpose other than creating the stock as directed above and for raising bank guarantee.
\n7. Upon fulfilling such conditions, the attachment orders would automatically stand suspended along wit<\/p>\n
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