Court questions provisional bank account attachment under Gujarat GST Act. Respondent to justify. Interim release granted.Provisional attachment of Bank Accounts - section 83 of the Gujarat Goods and Services Tax Act, 2017 - Held that:- A perusal of the record of the case reveals that the petitioner is not a fly by night operator and has paid duty and tax to the tune of more than rupees one hundred crore in the last year. Under the circumstances, the respondent shall explain the expediency and the rationale behind ordering attachment of all the bank accounts of the petitioner and virtually bringing its business to ... ... ... Issues involved: Provisional attachment of bank accounts under the Gujarat Goods and Services Tax Act, 2017 without proper explanation and its impact on the petitioner's business.

Analysis:

1. The petitioner's advocate argued that six bank accounts of the petitioner were provisionally attached for the recovery of a significant sum of money under the Gujarat Goods and Services Tax Act, 2017. The advocate highlighted that show cause notices were issued followed by immediate provisional attachment orders. The petitioner was shown to have a substantial amount of cash in these accounts.

2. Upon reviewing the case record, it was noted that the petitioner had a history of paying duties and taxes amounting to over one hundred crore rupees in the previous year. The court questioned the rationale behind attaching all bank accounts of the petitioner, emphasizing that the petitioner was not a fraudulent entity but a legitimate business operator. The court directed the respondent to explain the necessity and justification for such extensive attachment that severely impacted the petitioner's business operations.

3. Considering the arguments presented by the petitioner's advocate, the court issued a notice returnable on 23rd January, 2019. As an interim measure, the respondent was instructed to release the attachment over the petitioner's bank accounts, provided the petitioner maintained a specified amount in one of its accounts with a designated bank. This directive aimed to alleviate the immediate financial burden on the petitioner while awaiting further clarifications and justifications from the respondent. Provisional attachment of Bank Accounts - section 83 of the Gujarat Goods and Services Tax Act, 2017 - Held that:- A perusal of the record of the case reveals that the petitioner is not a fly by night operator and has paid duty and tax to the tune of more than rupees one hundred crore in the last year. Under the circumstances, the respondent shall explain the expediency and the rationale behind ordering attachment of all the bank accounts of the petitioner and virtually bringing its business to a grinding halt. Issue Notice returnable on 23rd January, 2019. MESSRS MONO STEEL (INDIA) LTD. Versus STATE OF GUJARAT
GST
2019 (2) TMI 827 - GUJARAT HIGH COURT - 2019 (22) G. S. T. L. 184 (Guj.)
GUJARAT HIGH COURT - HC
Dated:- 17-1-2019
R/SPECIAL CIVIL APPLICATION NO. 618 of 2019 - -
GST
MS HARSHA DEVANI AND DR A. P. THAKER, JJ. For The Petitioner (s) : AMAL PARESH DAVE (8961) AND MR PARESH M DAVE (260) For The Petitioner (s) : MR PARESH M DAVE(260)-G/425/1986 And ADVANCE COPY SERVED TO GOVERNMENT PLEADER/PP(99) ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Mr. Paresh Dave, learned advocate for the petitioner has submitted that for recovery of a sum of rupees three crore and odd, six bank accounts of the petitioner have been provisionally attached by issuing notices under section 83 of the Gujarat Goods and Services Tax Act, 2017, to the concerned banks. It was submitted that the show cause notices have been issued on 21st and 26th December, 2018 and immediately thereafter, the orders of provisional attachment have been made. The learned advocate has submitted a statement showing the details of the bank accounts of the petitioner, which indicates that the petitioner has a large amount of cash lying at its disposal with the concerned banks. 2. A perusal of the record of the case reveals that the petitioner is not a fly by night operator and has paid duty and tax to the tune of more than rupees one hundred crore in the last year. Under the circumstances, the respondent shall explain the expediency and the rationale behind ordering attachment of all the bank accounts of the petitioner and virtually bringing its business to a grinding halt. 3. Having regard to the submissions advanced by the learned advocate for the petitioner, Issue Notice returnable on 23rd January, 2019. In the meanwhile, by way of ad-interim relief, the respondent is directed to forthwith release the attachment over the bank accounts of the petitioner, subject to the petitioner maintaining an amount of Rs. 4,00,00,000/- in its Account No.117013011046 with the Dena Bank, Ahmedabad. Direct Service is permitted today.
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