Case Law Details
Conceptial Trade Vs State of Gujarat (Gujarat High Court)
Gujarat High Court held that provisional attachment of property under section 83 of the CGST Act can be invoked only during pendency of certain proceedings. In absence of any initiation of proceedings, powers of provisional attachment cannot be exercised.
Facts- The petitioner, engaged in the business of trading of products such as garments, footwear, leather accessories, amongst is located at Mumbai. It was stated that the petitioner does not have any commercial presence in the State of Gujarat and is not registered under the Gujarat State Tax laws.
It is the case of the petitioner that the petitioner wanted to purchase certain goods from one M/s. Raja Traders situated at Ahmedabad and for that purpose the petitioner paid advance amount of approximately Rs. 20 lakhs. The petitioner has further contended that the goods were never supplied nor advance amount paid to M/s. Raja Traders was returned.
Respondent no.3, Assistant Commissioner of Sales Tax, Unit-16, Ahmedabad issued the provisional attachment order dated 6.01.2022 in Form GST DRC-22 under section 83 of the CGST Act and Gujarat Goods and Service Tax Act, 2017 (‘GGST Act’) read with Rule 159(1) of the Goods and Service Tax Rules, 2017 addressed to the Branch Manager, IDFC First Bank, Kandivali (West) branch wherein Account No.10077040495 of the petitioner was ordered to be attached. It is contended in the said notice that M/s. Raja Traders and its syndicate availed GST refund fraudulently and that there was no transaction of sale or purchase with the petitioner though an amount was transferred by M/s. Raja Traders in the bank account of the petitioner with an intention to defraud the Government revenue.
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