2023 (9) TMI 856 - HC - GST

High-Stakes Tax Dispute: GST Authorities Empowered to Issue Summons and Provisional Attachment Under Sections 70 and 83

Squad 7 Security and Allied Services Versus Senior Intelligence Officer

HC addressed challenges to GST authorities' actions involving summons under Section 70 and provisional bank account attachment under Section 83. Court ... Provisional attachment of Bank Accounts of petitioner - collected GST amount not been deposited with the Government - HELD THAT:- The petitioner is directed to pay a sum of Rs. 2.25 Crores to the GST authorities at Hyderabad within a period of 30 days from today and subject to such deposit, the provisional attachment of the bank accounts of the petitioner maintained with respondent Nos. 3 to 7 would stand suspended. List after a month on 10.08.2023. Issues involved:The issues involved in this case are the legality of summons issued under Section 70 of the Central Goods and Services Tax Act, 2017, the provisional attachment of bank accounts under Section 83 of the CGST Act, and the threat of arrest despite cooperation, all being challenged as arbitrary and violative of constitutional provisions.Summarized Judgment:Summons Issued under Section 70:The petitioner challenged the legality of the summons issued by the 1st respondent under Section 70 of the CGST Act. The petitioner sought relief declaring the summons as arbitrary, illegal, and violative of constitutional principles. The Court directed no further coercive steps against the petitioner until a specified date for further consideration.Provisional Attachment of Bank Accounts under Section 83:The provisional attachment of the petitioner's bank accounts by the 2nd respondent under Section 83 of the CGST Act was also contested. The respondent claimed the petitioner had collected GST from clients but failed to deposit it with the Government. The respondent quantified the amount allegedly collected as GST by the petitioner and demanded a deposit to consider withdrawing the attachment order. The petitioner argued that such contentions were beyond the record and premature before adjudication.Court's Decision and Direction:After hearing both parties, the Court directed the petitioner to pay a specified sum to the GST authorities within 30 days. Upon such payment, the provisional attachment of bank accounts would be suspended. The Court clarified that this order would not hinder the ongoing investigation by the respondents. The case was listed for further hearing after a month.This summary provides an overview of the issues raised in the legal judgment and the Court's decisions regarding the summons issued under Section 70 and the provisional attachment of bank accounts under Section 83 of the CGST Act.