2019 (4) TMI 918 - HC - GST

Provisional attachment u/s 83 of the Gujarat GST, 2017 - recording of satisfaction - attachement of Bank accounts - Held that - Despite the fact that this Court, by judgment in 2018 (12) TMI 1441 - GUJARAT HIGH COURT , had set aside the order of attachment dated 22.10.2018, whereby the first respondent had attached three bank accounts of the petitioner by giving reasons regarding why such action was not warranted including recording satisfaction that no further amount was required to be recovered from the petitioner, and had also laid down guidelines for exercise of powers under section 83 of the Gujarat Goods and Services Tax, 2017, the first respondent has once again passed an identical order attaching the very same bank accounts without recording necessary satisfaction as to why such action was required to be taken in the interest of government revenue. Since the petitioner was constrained to approach this court by way of this writ petition challenging the attachment over its bank accounts on account of the action of Shri S. H. Gandhi, Assistant Commissioner of State Tax (the first respondent herein), which is totally contrary to the judgment in 2018 (12) TMI 1441 - GUJARAT HIGH COURT and is in disobedience of the directions and guidelines laid down therein, Shri S. H. Gandhi, Assistant Commissioner of State Tax is called upon to show cause as to why he should not be made personally liable to pay the costs of the petition as well as, as to why the matter should not be referred to the appropriate bench taking up contempt matters for disobedience of the directions of this court. Stand over to 26th April 2019 .

Summary

Issues:
1. Compliance with court order regarding production of original file
2. Lack of satisfaction recorded for provisional attachment under section 83 of Gujarat Goods and Services Tax, 2017
3. Repeated attachment of bank accounts despite court judgment setting it aside
4. Disobedience of court directions and guidelines by Assistant Commissioner of State Tax
5. Contempt proceedings against Assistant Commissioner of State Tax

Compliance with Court Order:
The High Court had directed the Joint Commissioner of Sales Tax to produce the original file for perusal, which was complied with. However, it was noted that no satisfaction had been recorded by the concerned officer for the provisional attachment under section 83 of the Gujarat Goods and Services Tax, 2017.

Lack of Satisfaction for Attachment:
Despite a previous court order setting aside the attachment of bank accounts and providing guidelines for exercising powers under section 83, the first respondent once again attached the same bank accounts without recording necessary satisfaction for the action in the interest of government revenue.

Repeated Attachment of Bank Accounts:
The petitioner challenged the repeated attachment of bank accounts by the Assistant Commissioner of State Tax, which was deemed contrary to the previous court judgment. The Assistant Commissioner was called upon to show cause for not being made personally liable for the costs of the petition and why contempt proceedings should not be initiated for disobedience of court directions.

Disobedience of Court Directions:
The Assistant Commissioner's actions were considered to be in disobedience of the court's previous judgment and guidelines. The matter was to be further considered on 26th April 2019 for potential contempt proceedings.

This detailed analysis covers the issues involved in the legal judgment, highlighting the lack of satisfaction for attachment, repeated actions contrary to court orders, and the potential consequences for disobedience of court directions by the Assistant Commissioner of State Tax.