Goisu Realty Pvt. Ltd. Vs State of Maharashtra & Ors. (Bombay High Court)
In Goisu Realty Pvt. Ltd. vs. State of Maharashtra & Ors., the Bombay High Court ruled in favor of the petitioner, setting aside the provisional attachment of its bank account under Section 83 of the MGST Act. The case arose when the Joint Commissioner of State Tax issued an order on January 28, 2025, attaching Goisu Realty’s bank account, citing alleged wrongful availing of Input Tax Credit (ITC) under Section 17(5)(d) of the MGST Act. The petitioner, represented by Senior Counsel Mr. Sridharan, argued that the attachment was unjustified, based on mere legal disputes rather than concrete evidence of tax evasion. The court noted that the power under Section 83 is extreme and must be exercised with caution, requiring a well-founded belief that the taxpayer may evade tax liabilities. However, the impugned order lacked specific findings or material evidence to justify the attachment. The court referenced the Supreme Court’s decision in Radha Krishan Industries vs. State of Himachal Pradesh, which emphasized strict adherence to statutory conditions before imposing such measures. Additionally, the CBIC Guidelines of February 23, 2021, were cited to argue that the attachment order was unwarranted.
