Case Law Details
Madhav Copper Limited Vs State of Gujarat (Gujarat High Court)
Gujarat High Court held that in the case of wrongful availment of input tax credit matter under GST the proceeding for adjudication is commenced as show case notice is issued. Hence, court directed authorities to complete the adjudication proceedings in time-bound manner and completion of the proceedings, provisional attachment will have its own fate.
Facts- The petitioner company engaged in the business of copper and copper scrap faced certain serious allegations in respect of wrongful availment of Input Tax Credit in respect of F.Y. 2017-2018 to F.Y. 2020-2021 comprising of the period beginning from April 2021 to July 2021, thus extending to F.Y. 2021-2022.
Upon a search carried out against the petitioner, GST Authorities allegedly found that the petitioner was engaged in the purchase of goods from 39 fictitious business firms and fake purchases for all those financial years to the tune of Rs. 770.64 crores were wrongfully made to avail the Input Tax Credit of Rs. 138.71 crores. The authorities termed it as a financial scam committed by the petitioner company to decide to proceed against the petitioner in accordance with law.
The provisional attachment order dated 26.7.2021 invoking powers u/s. 83 of the CGST Act, 2017 was passed against the petitioner. While the said first petition is still pending, what is to be noticed from the said proceedings with relevance at this stage, is the interim order dated 4.5.2022 was passed by the court.
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