9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 509 - HC - GSTAttachment of bank account - Rule 159(1) of the of the Goods and Service Tax Rules, 2017 - attachment on the ground that proceedings had been launched against it in terms of Section 67(2) of the CGST Act to determine the tax or any other amount that may be due from it - HELD THAT - The provisions of Section 83 mandate that the attachment of bank account be only during the pendency of proceedings in terms of Section 62/63/64/67/73/74 of the Act. In the counter filed by the respondents, they confirm at paragraph 5(ii), that the proceedings contemplated at the moment are in terms of Section 74. Having stated so as early as in June 2019, no action has been taken till date by issuance of show cause notice. In the light of the mandate contained in Section 83, either the respondents should initiate proceedings by issuing a show cause notice forthwith or should proceed to lift the attachment in question, also forthwith. The petitioner will appear before the respondent on 21.01.2020 and co-operate in the completion of verification process to enable immediate issuance of show cause notice. The show cause notice shall be issued within a period of two weeks, from 21.01.2020, i.e., on or before 04.02.2020 - Petition disposed.
Issues:
1. Challenge to attachment of bank account under GST Rules. 2. Interpretation of Section 83 of the CGST Act. 3. Mandamus for issuance of show cause notice. 4. Refund of amount collected during inspection. Issue 1: Challenge to attachment of bank account under GST Rules The petitioner challenged the attachment of their bank account by the Additional Director General of Goods and Service Tax Intelligence under Rule 159(1) of the GST Rules. The attachment was made in exercise of powers conferred under Section 83 of the CGST Act to determine the tax liability or any other amount due from the petitioner. The petitioner sought lifting of the attachment through representation but was rejected by the Additional Director General. Issue 2: Interpretation of Section 83 of the CGST Act The court noted that the attachment of a bank account under Section 83 should be during the pendency of proceedings under specific sections of the Act. The respondents confirmed that the proceedings were under Section 74, but no action had been taken, such as issuing a show cause notice. The court directed the respondents to either issue a show cause notice immediately or lift the attachment as per the mandate of Section 83. Issue 3: Mandamus for issuance of show cause notice The petitioner sought a mandamus directing the respondents to initiate proceedings for determining liability under the CGST Act by issuing a show cause notice. The court ordered the petitioner to cooperate in the verification process and directed the immediate issuance of a show cause notice within two weeks. Failure to issue the notice would result in the immediate lifting of the bank account attachment. Issue 4: Refund of amount collected during inspection One of the petitions sought a refund of a sum collected during an inspection. The court held that since proceedings for assessment under Section 74 were to be initiated immediately, the consideration of the refund would be premature. The retention or adjustment of the amount would be subject to the assessment to be made. The petition for refund was closed without costs. In conclusion, the court disposed of the petitions by providing directions for the initiation of proceedings, issuance of show cause notice, and the potential lifting of the bank account attachment if the notice was not issued within the stipulated timeframe. The judgment emphasized the importance of following the legal procedures outlined in the CGST Act and GST Rules.
|
