9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (9) TMI 53 - HC - GSTProvisional attachment of petitioner's bank accounts - liability of GST on sale of liquor - HELD THAT - The opening sentence of the Section 83 (1) of the CGST Act/DGST Act indicates that an order of provisional attachment under Section 83 (1) of the CGST Act/the DGST Act can be passed after the initiation of any proceedings under Chapter XII, Chapter XIV or Chapter XV of the CGST Act/the DGST Act. In the present case, this pre-condition is clearly satisfied as proceedings under Section 67 of the CGST Act/the DGST Act had been initiated prior to the issuance of the order dated 10.05.2024 provisionally attaching the petitioner s bank account. The contention that since the impugned order only mentions the proceedings under Section 67 of the CGST Act/the DGST Act, the life of the impugned order was confined till the conclusion of the proceedings, is unpersuasive. We find no basis for the said contention. The only requirement under Section 83 (1) of the CGST Act/the DGST Act is that an order of provisional attachment should be issued after the proceedings under Chapter XII, Chapter XIV or Chapter XV of the CGST Act/the SGST Act/the IGST Act, have commenced. As stated above, this condition is fully satisfied. In the present case, the proceedings against the petitioner are continuing and the Show Cause Notice dated 31.07.2024 under Section 74 of the CGST Act/the DGST Act has been issued. The petitioner s contention that the impugned order is liable to be set aside as the controversy involved is centred around the question of law is also unpersuasive. The object of provisional attachment under Section 83 (1) of the CGST Act/the DGST Act as is apparent from the plain language of Section 83 (1) of the CGST Act/the DGST Act is to protect Government revenue. It is not relevant whether the controversy involves a question of law or a question of fact - In the present case, the respondents have conducted a brief exercise of estimating the value of GST, which according to the Commissioner has not been paid by the petitioner. It is also apparent that the impugned order has been passed to protect the Government revenue. There are no merit in the present petition - petition dismissed.
Issues:
Challenge to provisional attachment order under Section 83(1) of the CGST Act/DGST Act and liability to pay GST on sale of liquor. Analysis: The petitioner challenged the order dated 25.06.2024 upholding the provisional attachment of their bank accounts under Section 83(1) of the CGST Act/DGST Act. The petitioner operated a night club and was accused of evading taxes by not disclosing actual liquor sales in GST returns. A search revealed suppressed liquor sales, leading to a provisional attachment due to an estimated primary GST liability of approximately &8377;4.7 Crores. The petitioner objected to the order, arguing that it should be lifted once related proceedings concluded. The court found the order valid as it was issued after initiating proceedings under Chapter XII, XIV, or XV of the Act, meeting the statutory requirement. The petitioner contended that the legal issue of GST liability on liquor sales negated the need for the Commissioner to use powers under Section 83(1) of the Acts. However, the court held that the purpose of provisional attachment is to safeguard government revenue, irrespective of legal or factual controversies. The order was justified to protect revenue, especially as the Commissioner estimated unpaid GST and passed the order for that reason. The court dismissed the petition, allowing the petitioner to offer alternative unencumbered assets for provisional attachment instead of bank accounts. It clarified that dismissal does not prevent the petitioner from claiming amounts due, with all rights and contentions reserved for future proceedings. Additionally, all pending applications were disposed of, concluding the judgment.
|
