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2023 (8) TMI 584 - BOMBAY HIGH COURTProvisional attachment of three bank accounts - attachment primarily on the basis that the Petitioner had claimed input tax credit from 14 parties which as per the preliminary investigation of the Respondents are suppliers who are fictitious/non-existent - Section 83 of the Central Goods and Service Tax Act, 2017 - HELD THAT:- As per Section 16(2), ITC can be taken only if there is actual receipt of goods or services. In the instant case, the Respondents’ preliminary investigation have revealed that the 14 parties from whom the Petitioner has purchased the goods, are not in existence and, therefore, there is a question mark whether if at all the goods have been received or not. The Respondents are investigating the entities/persons from whom the Petitioner has purchased the goods and as of today, they have found 14 parties who are fictitious. The amount of alleged ITC and the purchases made by the Petitioner are substantial and which is under investigation by the Respondents. It is informed that the Respondents would issue a show cause notice after completing their investigation. The Petitioner has not made out a prima facie case for grant of any interim relief. Furthermore, attachment of Overdraft Account having been lifted, there cannot be any irreparable damages or inconvenience in operating the business. Furthermore, the Petitioner has its offered to reverse ITC availed on purchases from these 14 parties which till today, the Petitioner has not reversed. In the peculiar facts and circumstances of the case, if the Petitioner deposits a sum of Rs. 2 crores with the Respondents, then in that case, the provisional attachment of all the accounts shall stand lifted which shall be subject to the further orders to be passed on this petition - Insofar as the legal issues as raised in the petition in the context of Section 83 of the CGST Act are concerned, it is opined that the petition would require final hearing. List this petition for final hearing on 29th September 2023.
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