TaxTMI 
TaxTMI 
2023 (4) TMI 704
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.... Therefore, they were heard together to be treated for disposal by this common order. 2. The petitioner company engaged in the business of copper and copper scrap faced certain serious allegations in respect of wrongful availment of Input Tax Credit in respect of the financial year 2017-2018 to financial year 2020-2021 comprising of the period beginning from April 2021 to July, 2021, thus extending to financial year 2021-2022. 3. Upon a search carried out against the petitioner company, the Goods and Service Tax Authorities allegedly found that the petitioner was engaged in the purchase of goods from 39 fictitious business firms and fake purchases for all those financial years to the tune of Rs. 770.64 crores were wrongfully made to avail the Input Tax Credit of Rs. 138.71 crores. The authorities termed it as a financial scam committed by the petitioner-company to decide to proceed against the petitioner in accordance with law. 3.1 The provisional attachment order dated 26.7.2021 invoking powers under section 83 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as 'the GST Act') was passed against the petitioner. The provisional attachment order covered th....
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.... (e) The amounts transferred in the Cash Credit account from the Current Account will not be disturbed and that equivalent balance of the said amounts in the Cash Credit Account would be maintained at any given point of time. (f) The writ applicant will ensure that the raw materials, stock and finished goods, would be dealt with in any manner under the supervision of the Deputy Commissioner of State Tax, Enforcement, Bhavnagar." 3.2.2 In paragraph No. 10, it was stated, "10. The respondent No.3- Bank is also directed to file an undertaking before this Court and the department through a Responsible Officer as under: "(a) The writ applicant would not be permitted to use/utilize the amounts credited in the Current Account No. 03480200000834; (b) The writ applicant would not be permitted to use the amounts transferred in the Cash Credit Account No. 03480500000073 from the Current Account No. 03480200000834 by virtue of order dated 04.05.2022; (c) It would be ensured that equivalent balance of the amount so transferred in the Cash Credit Account from the aforesaid Current Account, by virtue of order dated 04.05.2022, would be maintained at any given point of time." 3.3....
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.... Hemani with learned advocate Mr. Avinash Poddar stated that the petitioner has filed appeal against the order of cancellation of registration before the competent appellate authority. He further stated upon instructions from the petitioner that the petitioner is ready and willing to pay up the admitted liability of tax amount as reflected on the portal of the authorities to be discharged by the petitioner. 4.2 As the concession in that regard has been coming forth from the petitioner, the prayer about cancellation of registration made in the petition may be dealt with at the out set. 5. Since learned senior advocate for the petitioner makes a statement before the court that the petitioner would pay before the appellate authority the entire amount of admitted tax liability as reflected on the portal of the authorities as on date within one week from the date of receipt of copy of this order, once such amount of admitted tax is paid before the appellate authority, the consequence in that regard in favour of the petitioner would follow and the appellate authority would pass appropriate orders setting aside the cancellation of registration. This will have the effect of permitting th....
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....direct the authorities to complete the adjudication proceedings time-bound. Once the proceedings are over, the rights of the parties shall stand crystallized leaving the order of provisional attachment to its own fate. 6.1 Learned senior advocate for the petitioner stated that the petitioner will file its reply on or before 15.4.2023. 6.2 At this stage, learned Assistant Government pleader makes a statement that the competent authority shall complete the entire proceedings including passing of the appropriate order within six weeks from the date of receipt of reply. 6.3 It is directed that the adjudicatory proceedings shall be completed within six weeks from the date of receipt of copy of reply. 6.4 In the aforesaid view, Special Civil Application No. 17881 of 2022 is disposed of without going into the aspect of validity of the impugned order of provisional attachment, by directing the competent GST authorities to proceed to adjudicate the show cause notice after giving reasonable opportunity to the petitioner including to file reply to defend its case, within a time-bound period. 6.5 This court has not expressed any opinion on the merits of the case of the petitioner. 7. At ....