9911796707
TMI Blog2018 (12) TMI 1441X X X X Extracts X X X X X X X X Extracts X X X X ..... -. The petitioner has already deposited a sum of ₹ 17,00,000/- with the respondent. Insofar as the amount assessed towards the penalty is concerned, in the absence of any proceedings having been undertaken under the provisions of the GGST Act as well as any penalty having been imposed, the respondent authorities were not justified in resorting to such a drastic coercive measure of attachment of the bank accounts and seizure of goods, which results in bringing the business of the petitioner to a grinding halt. There is nothing to show that the respondents would not be in a position to recover any amount that the petitioner may ultimately be held liable to pay. In these circumstances, without recording any such satisfaction, the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pleased to direct the respondent authorities to immediately remove attachment of goods being attached vide Form GST INC 02 (Order of seizure) dated 12/10/2018 (the date of order is wrongly typed as 12/11/2018) being annexed at Annexure C above. The said order of seizure may kindly be quashed and set aside; 2. The petitioner is engaged in the business of manufacturing and supplying of various iron and steel products, viz., TMT bars, etc. and is paying goods and service tax in respect of the goods manufactured and supplied by it from the registered factory premises. On 11.10.2018, the first respondent Assistant Commissioner of State Tax, Unit-2 visited the factory premises of the petitioner company. During the course of such visi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner viz.: Axis Bank Ltd., Bhavnagar, C/C A/c No.917030053366001, Current A/c No.917020055857122 and Savings A/c No.200010100069386 of Manish Bansal as well as M/s. IndusInd Bank, Bhavnagar A/c No.159825708079 of Manish Bansal and Term Deposit A/c No.300723646746 as well as State Bank of India, Waghawadi Road Branch, Bhavnagar A/c No.31595134117 and 31638538591 came to be attached by the first respondent. The petitioner requested the respondent authorities to release its bank accounts; however, to no avail. It is the case of the petitioner that on account of seizure of its goods as well as attachment of the bank accounts, the petitioner is not in a position to carry on its day to day business and make payment of statutory dues like G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to be conducted, there was no reason for the respondents to believe that the petitioner would not pay its tax dues after proper assessment is carried out and, hence, there was no warrant for passing the order of attachment. It was submitted that even if the case of the respondents is taken at face value, at best, the tax liability of the petitioner would come to ₹ 13,84,000/- and therefore, the amount of ₹ 17,00,000/- deposited by the petitioner should be sufficient to protect the interests of the revenue. It was, accordingly, urged that therefore, the attachment of the bank accounts is required to be removed and the goods seized by the respondents are required to be released. 4. On the other hand, Mr. Utkarsh Sharma, lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty having been imposed, in the opinion of this court, the respondent authorities were not justified in resorting to such a drastic coercive measure of attachment of the bank accounts and seizure of goods, which results in bringing the business of the petitioner to a grinding halt. 7. Sub-section (1) of section 83 of the GGST Act provides that where the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person. On a plain reading of the said provision, it is evident that before resorting to such drastic action, the Commissioner is required to form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powers under section 83 of The GGST Act, the authorities should try to balance the interest of the Government revenue as well as a dealer to ensure that while the interest of the revenue is safeguarded, the dealer is also in a position to continue with his business, because it is only if the dealer continues with the business that he would generate more revenue. The authorities should keep in mind that bringing the business of a dealer to a halt does not in any manner serve the interest of the revenue. Therefore, while taking action under section 83 or 67(2) of the GGST Act, the concerned authorities should take care to ensure that equities are maintained and while securing the interest of the revenue, they should attempt to see that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
