2021 (3) TMI 441 - HC - GST

Attachment of Bank Accounts - HELD THAT - Mr. Ravi Prakash is directed to file an affidavit of the concerned officer, which will indicate, under what authority of law, were the amounts collected without issuance of a show cause notice or an order of assessment. List on 07.04.2021.

Summary

Issues:
1. Collection of amounts without issuance of show cause notice or order of assessment by the petitioner-company.
2. Authority under which the amounts were collected by the respondents.
3. Direction to file an affidavit by Mr. Ravi Prakash regarding the collection of amounts.
4. Stay on coercive steps against the petitioner-company.

Analysis:
1. The High Court heard arguments from both parties regarding the collection of amounts by the petitioner-company without the issuance of a show cause notice or an order of assessment. The petitioner's counsel, Mr. JP Sengh, contended that 14 bank accounts of the petitioner-company were attached, and the directors were coerced into depositing GST amounts. The respondents collected ?19,89,96,660 according to Mr. Singh's submission.

2. Mr. Ravi Prakash, representing the Revenue, stated that the petitioner-company voluntarily deposited amounts towards GST. However, when questioned about the authority under which the amounts were received, Mr. Prakash failed to provide a clear response. Consequently, the Court directed Mr. Prakash to file an affidavit from the concerned officer explaining the legal basis for the collection of amounts without the necessary notices or orders.

3. The Court set a deadline of one week for Mr. Prakash to file the affidavit. Any rejoinder to the affidavit must be submitted before the next hearing scheduled for 07.04.2021. During this period, no coercive actions will be taken against the petitioner-company, although the respondents are permitted to continue their investigation.

4. The judgment ensures a fair process by requiring clarity on the authority for the collection of amounts and providing an opportunity for responses before the next hearing. The stay on coercive steps balances the interests of both parties pending further clarification and legal submissions.