Case Law Details
Manish Scrap Traders Vs Principal Commissioner (Gujarat High Court)
Way back in the year 2016, in the case of Kaneria Granito Ltd. vs. Assistant Commissioner of Income Tax, Special Civil Application No.14497 of 2014 decided on 27.06.2016, a Co-ordinate Bench of this Court took the view that a cash credit account cannot be provisionally attached.
Various orders have been passed over a period of time condemning the action on the part of the department in provisionally attaching the cash credit account in exercise of powers under Section 83 of the Act.
Settled position of law appears to have been very conveniently over-looked by the Principal Commissioner, CGST, Surat.
The Principal Commissioner says that the reliance placed by the writ applicant herein on one of the orders passed by this Court in the case of M/s. Formative Tex Fab vs. State of Gujarat is not binding to him as in the case of M/s. Formative Tex Fab (Supra), the order of provisional attachment was passed by the Assistant Commissioner and not by the Principal Commissioner.
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