9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 464 - HC - VAT and Sales TaxProvisional attachment of transaction of shares - request to share the depository account/s held by the petitioner and the KYC details relating to PAN as enlisted in the said letter and freeze the transactions of shares - time limitation - HELD THAT - There are substance in the contention as urged on behalf of the petitioner, insofar as the effect of provisions of sub-section (2) of Section 35 of the MVAT Act would have in regard to the fact situation and the legality of the impugned attachment dated 11 April 2022 is concerned, after the expiry of a period of one year. Sub-section (2) of Section 35 clearly provides that the provisional attachment as made under sub-section (1) of Section 35 shall cease to have effect after expiry of a period of one year from the date of service of the order issued under sub-Section (1). However, the power under proviso to sub-section (2) to extend the period for one year, has not been exercised. In this view of the matter, certainly the attachment has ceased to have effect by operation of law after 12 April 2023. The petitioner would be correct in praying for the reliefs - Petition allowed.
Issues involved:
The primary challenge in the petition is to the notice dated 11 April 2022 issued by the respondent-State Tax Officer under the Maharashtra Value Added Tax Act, 2002 (MVAT) to freeze the transactions of shares held by the petitioner and related KYC details. The petitioner, a former director of a company in arrears of revenue, sought relief from the attachment of his assets. Detailed Summary: Issue 1: Impugned Notice and Jurisdiction The notice requested the National Security Depository Ltd. to share the depository accounts and KYC details of the petitioner, invoking Sections 34, 35, and 38 of the MVAT Act. The petitioner contended that the attachment of his DEMAT accounts should be lifted as per the provisions of Section 35(2) of the MVAT Act, which automatically ceases after a year from the date of service of the order. The petitioner sought relief through a writ of Certiorari to quash the impugned orders. Issue 2: Legal Arguments The petitioner argued that the attachment should be lifted as per Section 35(2) of the MVAT Act, while the State Tax Officer did not dispute this provision but kept other powers open for consideration. The Court acknowledged the automatic cessation of attachment after one year as per the law. Issue 3: Court Decision After considering the arguments, the Court found merit in the petitioner's contention regarding the effect of Section 35(2) of the MVAT Act on the attachment. The Court allowed the petition, declaring that the provisional attachment in regard to mutual fund units and shares of the petitioner ceased to operate by law. The Court clarified that the order only applied to the petitioner's assets and left other contentions and powers under the MVAT Act open for future consideration. Conclusion The Court granted relief to the petitioner, declaring the automatic cessation of the attachment of his assets under the MVAT Act. The Court's decision was based on the legal provisions and the petitioner's arguments regarding the jurisdiction and effect of the impugned notice.
|
