Messrs Kisan Mouldings Ltd. & Anr. Vs Union Of India & Ors. (Gujarat High Court)
In the case of Kisan Mouldings Ltd. & Anr. vs Union of India & Ors., the Gujarat High Court quashed an order that led to the attachment of Kisan Mouldings Ltd.’s bank accounts due to procedural flaws under the GST Act. The petitioner argued that the tax authorities issued a summary order under Form GST DRC-07 on August 13, 2019, without an accompanying detailed order under Sections 73 or 74 of the GST Act, which govern tax recovery processes. The company contended that without such a detailed order, the summary order alone was invalid as a basis for recovery actions and bank account attachment.
The Gujarat High Court observed that, in the absence of a supporting detailed order, the issued summary was not legally sustainable and deemed it “void ab initio.” Furthermore, the state representative acknowledged the lack of any detailed order on record. Consequently, the court directed the immediate lifting of the bank attachments, permitting Kisan Mouldings Ltd. to resume normal operations for the affected bank accounts. This decision underscores the importance of procedural adherence in tax recovery actions under the GST Act, especially concerning financial attachments, and reinforces the requirement for thorough documentation to support such enforcement actions.
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