Case Law Details
Valerius Industries Vs Union of India (Gujarat High Court)
Gujarat High Court has held that the power under Section 83 of the Central GST Act, 2017 is a drastic power which should be used sparingly and only on substantive weighty grounds. It observed that attachment of bank accounts and trading assets should be the last resort, and that blockage of input tax credit by way of computer entry was illegal. The Court was of the view that subjective satisfaction, which is required for the purpose of Section 83, is not dependent on Section 67. It noted that just because a search has been undertaken resulting in seizure of goods, it by itself may not be sufficient to arrive at the subjective satisfaction that it is necessary to pass an order of provisional attachment to protect government revenue. The High Court also held that the order for attachment can only be passed by a Commissioner and not by subordinate officers.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
1. Rule returnable forthwith. Ms. Maithili Mehta, the learned Assistant Government Pleader waives service of notice of rule for and on behalf of the respondents.
2 By this writ application under Article 226 of the Constitution of India, the writ applicant – a partnership has prayed for the following reliefs:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
