B. B. Metal Vs Joint Commissioner of State Tax (Bombay High Court)
In B. B. Metal Vs Joint Commissioner of State Tax, the Bombay High Court considered a writ petition challenging provisional attachment orders dated 17.09.2025 passed by the State Tax Authorities attaching five bank accounts of the petitioner under the MGST Act.
The petitioner primarily contended that the State Tax Authorities had initiated proceedings and attached the bank accounts even though the Central Tax Authorities were already investigating and seeking to recover the same alleged GST liability for the same period and subject matter. According to the petitioner, this amounted to parallel proceedings prohibited under Section 6(2)(b) of the CGST/MGST Act and violated the principles laid down by the Supreme Court in Armour Security (India) Ltd. v. Commissioner, CGST.
The facts recorded by the Court showed that on 07.11.2023, the Directorate General of Goods and Services Tax Intelligence (DGGI) initiated search proceedings against the petitioner alleging fraudulent availment of Input Tax Credit (ITC) from one supplier for the period 2017-18 to 2023-24.
Subsequently, on 30.10.2024, the Central Tax Authorities conducted another search under Section 67 of the CGST Act regarding ITC claimed from various suppliers for the period 2017-18 to 2024-25. Summons were issued under Section 70 of the CGST Act. Thereafter, on 17.01.2025, the Central Tax Authorities provisionally blocked ITC of Rs. 1,10,21,729 in the petitioner’s Electronic Credit Ledger and also issued a show cause notice concerning one supplier, Om Enterprises.
