2017 (6) TMI 1403 - HC - GST

Challenge to order of appropriation - HELD THAT - There is nothing on record to even remotely suggest that the dues towards Responsive Industries Ltd. was more than Rs. 5 crores. It is also not disputed that Responsive Industries Ltd. has deposited Rs. 5 crores with the department. The amount which is lying in excess with the department was appropriated for the dues of the sister concern Axiom Cordages Ltd. No provision of law has been pointed out that the same is not permissible. Thus, no interference is called for - petition disposed off.

Summary

The High Court of Bombay upheld the Settlement Commissioner's order of appropriation of funds deposited by Responsive Industries Ltd. for the dues of Axiom Cordages Ltd., sister concerns. The court found no legal basis to challenge the appropriation and dismissed the department's appeal. The Writ Petition was disposed of with no costs.