Page 83 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] BINDAL SMELTING PVT. LTD. v. ADDL. DIR. GEN., DIRECTORATE GEN. OF GST 593
better than immovable property and directly affects working capital of dealer.
[para 10]
Bank Account - Provisional attachment - Section 83 of Central Goods
and Services Tax Act, 2017 - Scope of - Attachment of bank account - Mandate
is to attach amount in fixed deposit or saving account - It does not apply to ac-
count having debit balance - Closure of business cannot be permitted unless
running of business itself is prohibited by law. [para 10]
Bank Account - Provisional attachment - Provisional attachment of
current account having debit balance at stage of pending investigation - As-
sessee running unit with more than 100 families dependent on assessee - No
proceedings pending under Section 74 of Central Goods and Services Tax Act,
2017 which would start on issuance of show cause notice - Department seized
record of assessee who supplied several documents and put personal appear-
ance through Directors and employees - HELD : Attachment order quashed as
it would ruin business of dealer and not protect interest of revenue - Section 83
of Central Goods and Services Tax Act, 2017. [para 10]
Petition allowed
CASES CITED
Akhil Krishan Maggu v. Deputy Director — 2020 (32) G.S.T.L. 516 (P & H) — Relied on ........... [Para 11]
Gandhi Trading v. Assistant Commissioner of Income Tax
— (1999) 239 ITR 337 (Bom.) — Relied on .......................................................................... [Paras 8.3, 10]
Kaneria Granito Ltd. v. Assistant Commissioner of Income Tax
— (2016) 241 Taxman 315 (Gujarat) — Relied on ............................................................. [Paras 8.4, 10]
Valerius Industries v. Union of India — 2019 (30) G.S.T.L. 15 (Guj.) — Relied on ........................... [Para 9]
REPRESENTED BY : Shri Jagmohan Bansal, Advocate, for the Petitioner.
Shri Sourabh Goel, Advocate, for the Respondent.
[Order per : Jaswant Singh, J.]. - The Petitioner, a limited company,
through instant petition under Article 226 of Constitution of India is seeking
quashing of order, dated 10-7-2019 (Annexure P-8) and order, dated 12-9-2019
(Annexure P-10) passed by Additional Director General, Gurugram-Respondent
in exercise of power conferred under Section 83 of Central Goods and Services
Tax Act, 2017 (for short ‘CGST Act, 2017’) whereby Respondent has provisionally
attached bank account of the Petitioner. It has been further prayed that Respond-
ent may be restrained from taking coercive steps against the Petitioner and its
Directors/employees.
2. The brief facts necessary to adjudicate controversy involved as
emerging from record are that the Petitioner is manufacturing lead ingots, red
oxide and grey oxide. On 27-3-2018, officials of Respondent/GST Directorate
searched premises of the Petitioner and during search seized record. The Re-
spondent time to time directed Petitioner to supply different documents which
Petitioner supplied but failed to provide transporter bilty and weighment slips.
The Respondent recorded statements of officials of Petitioner and conducted fur-
ther investigation. The Respondent during investigation found that Petitioner
has purchased scrap batteries from different suppliers which included 16 suppli-
ers, who are not traceable. The Petitioner during July, 2017 to March, 2018 had
availed input tax credit (for short ‘ITC’) amounting to Rs. 13.38 Crore on the ba-
sis of invoices of 16 suppliers, who are not traceable.
The Respondent vide order, dated 10-7-2019 (Annexure P-8) provisionally
attached Over Cash Credit (for short ‘OCC’) Account of the Petitioner, which
GST LAW TIMES  26th March 2020  179