2021 (12) TMI 838 - HC - GST

Court directs prompt action on objections to provisional attachment under CGST Act & Gujarat GST Act, emphasizing fairness and timelines.

The court directed the commissioner to address the petitioner's objections within three days regarding the provisional attachment made under the CGST Act ... Seeking direction against the respondent No. 3 to release the provisional attachment of the bank accounts, plant & machinery, factory premises - provisional attachment made is dehors the provisions of Section 83 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- The objections have been filed by the petitioner well within time. The commissioner has also afforded opportunity of hearing. However, he needs to pass an order which since has not come, the petitioner is before this Court. Let such order be passed within 3 days. Any further actions on the part of the respondents if aggrieved by the outcome shall be permissible under the law. Application disposed off. Issues:Seeking direction against respondent to release provisional attachment under CGST Act, 2017 and Gujarat GST Act; Allegation of availing Input Tax Credit based on fake invoices; Objections raised by petitioner under CGST Rules not addressed; Request for relief to quash FORM GST DRC-22 and release provisional attachment; Urgency due to business operations being affected.Analysis:The petitioner approached the court seeking direction against respondent No. 3 to release the provisional attachment made on bank accounts, plant & machinery, and factory premises. The petitioner argued that the attachment was not in accordance with Section 83 of the CGST Act and Gujarat GST Act. Search proceedings were conducted at the petitioner's premises, alleging the use of fake invoices to claim Input Tax Credit without actual movement of goods. Respondent No. 3 had issued FORM GST DRC-22, detailing the reasons for attachment and attaching movable and immovable properties.The petitioner expressed concern over the impact of the attachment on business operations, particularly on the ability to pay salaries, electricity bills, and GST liabilities. Despite raising objections under rule 159(5) of the CGST Rules, the petitioner's concerns were not addressed, leading to a halt in business activities. The petitioner provided a detailed chart of assets and liabilities, urging the court to allow business transactions and address grievances within the statutory time period.The relief sought by the petitioner included quashing FORM GST DRC-22, releasing provisional attachments, lifting debit freeze, and allowing business operations to continue smoothly. The court, after hearing the arguments, directed the commissioner to pass an order within three days to address the petitioner's objections. The court emphasized that further actions by the respondents would be permissible under the law if aggrieved by the outcome. The application was disposed of with these observations, allowing for direct service through speed post and emode.In conclusion, the judgment addressed the petitioner's concerns regarding the provisional attachment made under the CGST Act and Gujarat GST Act. The court directed timely resolution of objections raised by the petitioner and emphasized the importance of allowing business operations to continue smoothly. The judgment highlighted the need for procedural fairness and adherence to statutory timelines in such matters, ensuring that the rights of the parties involved are duly considered and addressed.