Case Law Details
Case of Kushal Ltd Vs UoI (Gujarat High Court)
Provisional Attachment not permissible u/s 83 when proceedings u/s 62, 63, 64, 67 or 74 of CGST Act not pending
The petitioner-company manufactures and sells paper and paper waste and is also engaged in trading in various commodities. The petitioners were also duly registered under the GST Acts and regularly filed returns and discharged tax liability – The petitioner claimed to have entered into transactions on as is where is basis in the relevant year. The goods were purchased from registered persons under the GST Acts on payment of tax and were in turn sold to other registered persons. ITC was claimed of tax paid on purchases which was utilized towards payment of output tax liability and differential tax amount was paid through electronic cash ledger. Thereafter search proceedings were conducted at the petitioner’s premises whereupon enquiry was made into the trading transactions and evidence regarding sales and purchases was called for. The petitioners claimed that since the goods were sold on as is where is basis, there was no evidence of their movement. While it was not disputed that the goods were purchased from registered vendors who had paid the taxes due. Later, summons were issued to the petitioner & statements were recorded. The petitioners submitted the documents as called for and claimed there to be no evasion of GST. The Revenue officers visited the petitioner’s premises again for scrutiny of the same transactions whereupon the second petitioner was called to the commissionerate and was arrested immediately. The second petitioner was later granted bail u/s 167(2) of the CrPC 1973.
The second petitioner was later granted bail u/s 167(2) of the CrPC 1973 – The petitioner claimed to have been issued no notice u/s 73 or 74 of the GST Acts. It was also claimed that no proceedings were pending u/s 62, 63, 64, 67, 73 or 74 of the GST Acts, yet the Revenue provisionally attached the petitioner’s bank accounts in exercise of powers u/s 83, which in such circumstances, was wholly without jurisdiction.
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