Guj HC continues attachment of property in the interest of the Revenue of the Government.
Forum: Gujarat High Court
The Petitioner is engaged in the business of manufacturing of different types of knitted fabrics. The Petitioner received a summons dated 30th June 2020 issued by Respondent No.4 under the provisions of Section 70(1) of the GST Act, 2017. It was the case of the Petitioner that he is 68 years of age and had been medically advised not to travel and stay at home. In response to the summons issued, a letter was addressed to Respondent No.4 intimating that the Petitioner would not be in a position to remain present on 2nd July 2020.
Thereafter, the Respondent No.4 issued DRC-01A in accordance with Rule 142 (1A) of the GGST Rules, 2017. The total liability, as assessed, to the tune of Rs.69,25,862/- plus interest and penalty. The residential premises of the Petitioner also came to be provisionally attached vide an attachment order. The Petitioner thus filed a writ with the Hon’ble HC praying;
a) to quash and to set-aside Form DRC 1A issued by Respondent no 4;
b) to quash and set-aside the impugned provisional attachment order i.e. Form GST DRC-22, for both the premises i.e. for factory premises and residential premises.
c) To lift the attachment of both the properties; To stay the operation of Form GST DRC 01A; Not to take any coercive action against the Petitioner.
The Hon’ble HC held that it ws not in dispute that the Petitioner had no opportunity to make good his case that all his transactions are legal and free from any doubt. Besides the same, the Petitioner had informed the Respondent No.4 that he had been medically advised not to get out of his house.
The HC thus asked Respondent No. 4 to quash and set aside the order passed by in Form GST DRC-01A dated 23rd July 2020 and remitted the matter to the Respondent No.4 for fresh consideration of the matter after giving an opportunity of hearing to the Petitioner.
The Hon’ble HC held the view that to protect the interest of the Revenue of the Government the attachment should continue so that no third party rights were created during the interregnum period.
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