Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2020 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 1682 - HC - VAT and Sales TaxIllegal attachment and withdrawal from bank account by respondents to recover the arrears of VAT dues of another company - recovery merely on the pretext that the proprietor of the petitioner was once an employee of M/s.Shree Ganesh Jewellery House Limited - HELD THAT:- Admittedly, petitioner’s proprietor had submitted another application under VAT Act for registration of the petitioner entity on 01-09-2009, which has been filed by 1st respondent himself showing that the proprietor of the petitioner is dealing with a separate entity and no longer with M/s.Shree Ganesh Jewellery House Limited - There is no material filed by 1st respondent to show that after the petitioner was released by M/s.Shree Ganesh Jewellery House Limited on 01-10-2013, he was associated in any way with the affairs of the said entity. There is no question of lifting the corporate veil treating that the proprietor of petitioner entity and the assessee M/s.Shree Ganesh Jewellery House Limited as one and the same or as entities which are connected or related - Without any material linking the proprietor of the petitioner with M/s.Shree Ganesh Jewellery House Limited, the bank account of the petitioner cannot be attached by the 1st respondent and the sum of Rs.4,31,210/-, which belongs to the petitioner entity, cannot be adjusted towards the VAT dues of M/s.Shree Ganesh Jewellery House Limited. This action of 1st respondent is patently arbitrary, illegal and violative of Article 300-A of the Constitution of India. The 1st respondent is directed to refund to the petitioner the sum of Rs.4,39,210/- with interest @ 9% p.a. from the date of such withdrawal till date of it’s payment. The respondent Nos.1 and 4 shall also pay costs of Rs.20,000/- to the petitioner within four (04) weeks - The writ petition is allowed.
|