2022 (1) TMI 389 - HC - VAT and Sales Tax

Defreezing of current bank accounts - Entry No.58 A of the Schedule II of the VAT Act - HELD THAT - Noticing the fact that the petitioner is already before the statutory authority filing two Revision Application Nos.54 55 of 2021, let the same be decided within a period of two weeks from the date of receipt of a copy of this order. In the event of the petitioner making a request of defreezing the Bank Accounts and the authority acceding to such request, the final adjudication also can come thereafter within a period of eight weeks. The present petition stands disposed off.

Summary

Issues:
Challenging order of Deputy Commissioner of Commercial Tax, freezing of bank accounts, classification of machinery for tax purposes, delay in providing details to authority, prayer for relief and direction for decision on Revision Applications.

Analysis:
The petitioner, a registered dealer under the Gujarat Value Added Tax Act, challenged the order dated 17.03.2021 passed by the Deputy Commissioner of Commercial Tax, Range-3, Ahmedabad. The petitioner's business of manufacturing Gas Metering Skid was affected due to the freezing of bank accounts by the authority. The petitioner contended that the machinery falls under Entry No.58 A of the VAT Act, attracting a tax rate of 5%. The authority withdrew a substantial amount from the bank account, leading to the petitioner approaching the court for relief, urging a quick decision on Revision Applications 54 and 55 of 2021.

The prayers included seeking admission and allowance of the petition, quashing the impugned order, directing the decision on Revision Applications within six months, defreezing bank accounts, declaring the machinery as part of a Gas production plant falling under Entry 58 A, and staying the operation of the order dated 17.03.2021. The court heard both parties and directed the statutory authority to decide on the Revision Applications within two weeks and complete final adjudication within eight weeks if bank accounts are defrozen upon request.

The court disposed of the petition with the given directions without delving into the merits of the case. Additionally, the court permitted direct service through speed post and e-mode besides the regular mode of service. The judgment focused on addressing the immediate concerns of the petitioner regarding the freezing of bank accounts and the pending Revision Applications, ensuring a timely resolution while maintaining procedural fairness and adherence to the VAT Act.