No seizure of goods and attachment of bank accounts can be done if GST already deposited: Gujarat HC

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No seizure of goods and attachment of bank accounts can be done if GST already deposited: Gujarat HC

No seizure of goods and attachment of bank accounts can be done if GST already deposited: HC

Patran Steel Rolling Mill vs. Assistant Commissioner of State Tax, Unit 2 – [2019] 101 taxmann.com 80 (Gujarat)

The petitioner was engaged in the manufacturing and supplying of various iron and steel products. Assistant Commissioner of State Tax, conducted search at the premises of petitioner and carried out comparison of the physical stocks of raw materials and finished goods with recorded quantity of the same and found that there was a stock difference. Concerned authority pressurized the petitioner to deposit Rs. 17, 00,000/- and the same was deposited by the petitioner. An order of seizure of goods which were found in excess along with the bank accounts of petitioner was passed to protecting the interest of revenue. In these circumstances the petitioner was not in a position to carry on its day to day business and make payment of statutory dues like GST, income tax, local taxes, etc.. Petitioner approached HC seeking the relief noted above.

  Court held that while taking action under section 83 or section 67(2) of the GGST Act, the concerned authorities should take care to ensure that equities are maintained and while securing the interest of the revenue, they should attempt to see that the dealer is in a position to continue with the business. Court also observed that the petitioner had already deposited a sum in excess of tax liability which could be calculated in this case. Since the petitioner had already deposited tax liability, there was no question of protecting the interest of the Governments revenue. Hence, the concerned authority was directed to forthwith release the above mentioned bank accounts as well as the seized goods of the petitioner.

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