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2017 (12) TMI 1012 - GUJARAT HIGH COURTAttachment of Bank accounts - dis-allowance of input tax credit on the purchases made from various vendors - clauses (a) and (b) of sub-section (1) of section 44 of the Act - Held that: - A plain and simple reading of the aforesaid provisions will suggest that the power under the same is to be exercised when there is a person who has debtor-creditor relationship with the dealer and from whom his money is due or may become due to him or the person who holds or may subsequently hold money for or on account of such dealer - the bank and the assessee do not have debtor-creditor relationship - impugned notices of attachment of the bank accounts is to be set aside. Issuance of the impugned notices of attachment during pendency of the appeal and the stay application of the petitioner - Held that: - it is expected of the authority to stay its hands till the stay application is decided, unless the same is not decided on account of default on the part of the petitioner or it is found that the petitioner is unnecessarily delaying the hearing of the stay application and in absence of any exceptional circumstances, there is no warrant for the respondent authorities to proceed to initiate coercive recovery in exercise of powers under section 44 of the Act by attaching the bank account of the petitioner. Petition allowed - decided in favor of petitioner.
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