Case Law Details
Madhav Copper Limited Vs State of Gujarat (Gujarat High Court)
Conclusion: In present facts of the case, the writ petition was disposed of by providing partial relief to the Petitioner for fulfilment of its business orders but with a condition to cooperate with Revenue in investigation.
Facts: This is a petition under Article 226 of the Constitution of India challenging the provisional attachment order attaching the properties of Madhav Copper Limited under Section 83 of the CGST Act. The petitioner no.1 is a company engaged in the business of Copper Products and is a leading manufacturers of various products of copper like Copper Rod, Copper Wire, Fiber Glass Conductor etc. The petitioner no.1 also imports raw-materials/ scraps for manufacturing these products and export final products made out of the copper. It has its own Certificate of Importer-Exporter Code (IEC). The petitioner also supplies to the reputed private entities and government entities across the India.
A notice came to be issued by the Assistant Commissioner of State Tax in the Form GST DRC-01 on 08.07.2019 calling upon the petitioner no.1 to make payment for the input tax credit claimed for the purchase made through the suppliers who defaulted in payment of GST. The reply had been given on 06.08.2020 with a request to drop the proceedings, however, no communication has been received from the Assistant Commissioner of State Tax till this date. According to the petitioner, it has to be understood that the explanation is accepted.
The officers of the State Tax had caused search under the GGST Act at the office premises of the petitioner no.1 and drew the Panchnama on 04.10.2019 and seized various purchase files as noted in order of seizure on the very date under FORM GST INS-02. Since there was a discrepancy in the stock, the petitioner no.1 voluntarily deposited the GST to the tune of Rs. 1,76,198/- and 15% penalty by DRC-03. The petitioner has also substantiated the same with the Challan in FORM GST DRC-03.
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