Page 47 - GSTL_11th June 2020_Vol 37_Part 2

Bank Account — Provisional attachment of bank account
under GST law when not justified
The Supreme Court Bench comprising Hon’ble Mr. Justice A.M.
Khanwilkar and Hon’ble Mr. Justice Ajay Rastogi on 3-5-2019 after condoning
the delay dismissed the Special Leave Petition (Civil) Diary No. 13633 of 2019
filed by Assistant Commissioner of State Tax against the Judgment and Order
dated 20-12-2018 of Gujarat High Court in R/Special Civil Application No. 16931
of 2018 as reported in 2019 (20) G.S.T.L. 732 (Guj.) (Patran Steel Rolling Mill v.
Assistant Commissioner of State Tax). While dismissing the petition, the Supreme
Court passed the following order :
“Delay condoned.
Considering the facts of the present case, we decline to interfere in this
Special Leave Petition. The Special Leave Petition is dismissed accordingly,
leaving the all question of law open.”
The Gujarat High Court in its impugned order had held that the tax lia-
bility in terms of goods seized did not exceed ` 1,30,000/- in this case against
which the assessee had already deposited an amount of ` 1,70,000/- with the
Department. Further in absence of any proceedings undertaken and penalty im-
posed, Department was not justified in resorting to drastic coercive measure of
attachment of bank accounts and seizure of goods, which results in bringing as-
sessee’s business halt. Commissioner under said circumstances could not have
formed opinion that it was necessary to resort to provisional attachment to pro-
tect interest of Government revenue. In view of this provisional attachment of
bank account was set aside and strictures issued against Department for exercis-
ing power of attachment without application of mind.
REPRESENTED BY : Mr. Pritesh Kapur, Senior Advocate, Ms. Hemantika
Wahi, AOR, Ms. Jesal Wahi and Mr. Kabir Hathi,
Advocates, for the Petitioner.

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GST LAW TIMES  11th June 2020  47