Case Law Details
Sri Marg Human Resources Pvt. Ltd. Vs Principal Additional Director General (Madras High Court)
In the present case, Petitioner submits that Section 67 of CGST cannot be against the future receivables and prays for lifting of the impugned attachment, pending issuance of SCN and determination of tax liability. Madras High court held that attachment proceedings cannot be at the cost of right of provision under Article 19(1)(g) of the Constitution which provides right to practise any profession, or to carry on any occupation, trade or business. The petitioner has already discharged 27% of the proposed and estimated tax due. There is a mechanism provided under the Act for proper adjudication of the tax due and determination under Sections 73 and 74 of the Act. Therefore, there is no meaning in attaching the bank accounts any further. The respondents have commenced the investigation during October, 2020. The respondents can issue notice under Section 73 of the CGST Act, 2017 and thereafter, determine the amount due and recover the amounts
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition has been filed challenging the attachment orders dated 12.01.2021 and 28.01.2021. These attachment orders have been issued under Section 83 of the Central Goods and Services Tax Act, 2017 [hereinafter referred to as ‘CGST Act, 2017’], pursuant to a search and investigation ordered against the petitioner company some time during October, 2020.
2. It is noticed that during the pendency of the investigation, the respondents have already appropriated a sum of Rs.5.68 Crores, which were lying in the accounts of the petitioner company. The Directors of the petitioner company were also arrested and they were released on bail subsequent to bail order dated 19.02.2021 in Crl.O.P.Nos.2175 and 2176 of 2021. This order is a conditional order, which reads as under:-
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