2019 (5) TMI 364 - HC - VAT and Sales Tax

Court Stays Bank Account Attachment under Tax Acts, Orders Further Examination

The court issued a stay on the provisional attachment of the petitioners' bank accounts under the Gujarat Value Added Tax Act, 2003 and the Goods and ... Attachment of Bank Accounts - whether the expression, “Government revenue” would include penalty which the dealer may or may not become liable to pay at a subsequent date? - HELD THAT:- The court is of the view that the matter requires consideration. Issue Rule returnable on 17th July, 2019. Issues:Attachment of bank accounts under Gujarat Value Added Tax Act, 2003 and Goods and Services Tax Act, 2017 - Interpretation of 'Government revenue' - Provisional attachment of property - Stay of impugned order.Analysis:1. The main issue in this case revolves around the attachment of the petitioners' bank accounts by the respondents under the Gujarat Value Added Tax Act, 2003 and the Goods and Services Tax Act, 2017. The respondents claim a liability of over &8377; 3,03,61,800/- as penalty under the Gujarat Value Added Tax Act, 2003, and around &8377; 2.5 crores under the Goods and Services Tax Act, 2017. The key question before the court is whether the expression 'Government revenue' includes penalties that a dealer may or may not become liable to pay in the future.2. The court, after hearing the arguments from both sides, finds that the matter necessitates further consideration. Consequently, the court issues a Rule returnable on 17th July 2019. As an interim measure, the court stays the operation of the impugned order dated 29.9.2018. This stay results in the immediate release of the petitioners' bank accounts, including Current Account No.3575214257 and Current Account No.2725050000125, along with the attached stock.3. While the impugned order is stayed, the Department retains the liberty to proceed with the assessment. The petitioners are directed to cooperate with the respondents during the assessment process. Moreover, direct service is permitted in this case to ensure timely communication of the court's decision.This detailed analysis covers the significant aspects of the judgment, focusing on the issues of attachment of bank accounts, interpretation of 'Government revenue,' provisional attachment of property, and the stay of the impugned order.