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2018 (4) TMI 1292 - HC - GSTSupply of branded as well as unbranded goods - non-payment of tax - the departmental authorities collected three cheques for a total amount of ₹ 19,74,886/- under co-ercion - whether this act of Department to collect post-dated cheques during raid permissible? - Held that: - the action of the department cannot be countenanced. It has been held by this Court and other High Courts of the country that the practice of collecting post-dated cheques under coercion during raid is not permissible means of collection of revenue particularly, when no tax demand has been confirmed or crystallized - In the present case, there does not appear to be any justification of the departmental authorities to collect and the petitioners to voluntarily give cheques for the said amount - Department is directed to return the cheques. Validity of second SCN - second impugned SCN also pertains to the same period and same demand of unpaid taxes only the figure now proposes is ₹ 1,29,13,928/- - could the department have issued such a notice in purported exercise of powers under section 74(3) of the CGST Act? - Held that: - powers under sub-section (3) of section 74 cannot be exercised for expanding or enlarging the liability arising out of show-cause notice under sub-section (1) from the same period - Essentially, sub-sections (1) and (3) of section 74 are envisaged to cover separate periods - the respondents are wholly incorrect in issuing a fresh show-cause notice for the same period of July 2017 to 20.02.2018, which notice was already issued under sub-section (1) of section 74 of the Act. Attachment of Bank Accounts of petitioners - no reason given for such attachment - Held that: - Under sub-section (1) of section 83, the competent authority has power of provisional attachment, where during pendency of any proceedings under the Act he is of the opinion that for the purpose of protecting the interest of government revenue, it is necessary so to do. Such provisional attachment could be of any property including the bank account of the taxable person - In the present case, nothing is demonstrated by the department either in the orders of attachment or in the affidavit filed before us. The reason why exercise of such drastic power of attachment of bank accounts was necessary - attachments are set aside, in the absence of reasons for attachment. Petition allowed.
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