Benito Operations And Technologies Pvt. Ltd. Vs Deputy Excise And Taxation Commissioner (Delhi High Court)
The Delhi High Court has set aside orders for the provisional attachment of bank accounts belonging to Benito Operations & Technologies Pvt. Ltd. The ruling was based on the principle that the attachment could not be sustained once the principal company, M/s Wings Operations and Technology India Pvt. Limited, had filed an appeal against the tax demand and made the mandatory pre-deposit as required by the Central Goods and Service Tax (CGST) Act, 2017. The court’s decision effectively restrained the tax authorities from pursuing the attachment and allowed the company to operate its bank accounts.
The case arose from a tax investigation into M/s Wings Operations and Technology India Pvt. Limited. An adjudication order had been passed against the company, confirming a demand for unpaid tax, interest, and penalties related to a fraudulent claim of Input Tax Credit (ITC). The tax department alleged that Benito Operations & Technologies Pvt. Ltd. was a newly incorporated firm with the same directors, created to evade the tax liabilities of the original company. Consequently, the tax authorities provisionally attached the bank accounts of Benito Operations & Technologies Pvt. Ltd. under Section 83 of the CGST Act.
