Provisional Bank Account Attachment Invalid if GST Liability not Determined: Bombay HC

Shubh Corporation Vs State of Maharashtra (Bombay High Court)

In a significant pronouncement, the Bombay High Court has invalidated a provisional attachment order of a bank account belonging to Shubh Corporation, a partnership firm, under Section 83 of the Maharashtra Goods and Services Tax Act, 2017 (MGST Act). The Court’s ruling underscored that such a formidable power cannot be exercised without a determined tax liability and concrete material supporting the necessity of the attachment, thereby offering a crucial check on the arbitrary application of this statutory provision b

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