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2022 (5) TMI 187 - GUJARAT HIGH COURTAttachment of personal assets - non-discharge of liability by two proprietary firms and the two partnership firms - Availment of ITC illegally - large scale fraud - whether the personal assets of the writ applicants can be put to auction and the amount be recovered towards the discharge of the liability of the two proprietary firms and the two partnership firms? - HELD THAT:- Section 44 of the Act provides for a special mode of recovery. Section 44 starts with a non-obstante clause. Sub section (a) to section 44 is more in the nature of a garnishee provision. Sub section (a) provides that any person from whom any amount of money is due or may become due to a dealer then such money can be appropriated towards the discharge of the liability of the dealer. It is not the case of the department that the case falls within sub section (a). What is sought to be relied upon is sub section (b). Sub section (b) provides that any person who holds or may subsequently hold any money for or on account of such dealer then that money can be appropriated towards the discharge of the liability of the dealer. The writ applicant no.3 namely Ruchita Mukesh Kapadia got married to the writ applicant no. 1 – Rohan Sunil Shah in 2014. Ruchita appears to be a native resident of Mumbai before her marriage. The department has gone to the extent of attaching her bank account running in the joint name of her father at Mumbai. It is difficult to understand, how her bank account, running jointly with the name with her father, could have been attached under Section 44 of the Act. Post this matter for final disposal on 23.03.2022 on top of the Board.
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