9911796707
Advanced Search 
TMI Blog2018 (2) TMI 1800X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act"). 4. Search proceedings came to be conducted by the officers of the Commercial Tax Department from 1.9.2016 to 6.9.2016. At the end of the search proceedings, certain legal issues were raised because of which the authorities were of the opinion that there could be demand against the petitioners in assessment proceedings. The respondents initiated assessment proceedings for the years 2013-14 onwards by issuing statutory notices. The petitioners gave explanation regarding the issues raised by the respondents. However, the authorities proceeded to provisionally attach the stock of the petitioner as well as its bank accounts under section 45 of the GVAT Act by passing provisional attachment orders. Total value of the stock of the petitioners which have been attached is Rs. 3,28,24,724/- which according to the petitioners, is almost equivalent to the total demand of tax, interest and penalty proposed to be made in the show cause notice. However, despite the aforesaid fact, the bank accounts of the petitioners have been attached by the respondent authorities. Being aggrieved, the petitioners have filed the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the conclusion of the assessment/reassessment proceedings, if there is any tax liability, the revenue may not be in a position to recover the amount thereafter, in such a case only, however, on formation of subjective satisfaction/opinion, the Commissioner may exercise the powers under section 45 of the GVAT Act. It was urged that thus, definite guidelines have been laid down by this court as to the circumstances under which an order under section 45 of the GVAT Act can be passed. However, in the present case, without recording any satisfaction on such circumstances, the order of provisional attachment has been made. 5.1 The attention of the court was also invited to the order dated 17.10.2016, to point out that the Assistant Commissioner has invited the attention of the bank to the provisions of section 44 of the GVAT Act, which would be applicable at a stage when recovery of adjudicated dues is to be made and not during the pendency of proceedings. It was submitted that therefore, even the provision invoked by the respondents is incorrect. 5.2 It was further submitted that the respondents have already attached stock valued at Rs. 3,28,24,724/- which is almost equivalent to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. [1] Where during the pendency of any proceedings of assessment or reassessment of turnover escaping assessment, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may by order in writing attach provisionally any property belonging to the dealer in such a manner as may be prescribed. [2] Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1)." 9. This section, came to be interpreted by this court in the case of Vishwanath Realter v. State of Gujarat (supra), wherein it was held thus: "8.3. Section 45 of the VAT Act confers powers upon the Commissioner to pass the order of provisional attachment of any property belonging to the dealer during the pendency of any proceedings of assessment or reassessment of turnover escaping assessment. However, the order of provisional attachment can be passed by the Commissioner when the Commissioner is of the opinion that for the purpose of protecting the interest of the Government Revenue, it is necessary so to do. Therefore, before passing the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that reference has been made therein to the provisions of section 44 of the GVAT Act, which provides for special mode of recovery of arrears of tax, penalty or interest under the Act. In other words, the same relates to dues which have crystallized in favour of the revenue, whereas in the facts of the present case, the assessment order has not yet been passed. Under the circumstances, it is evident that the action of attaching the bank accounts of the petitioners has been taken in a perfunctory and casual manner without application of mind to the relevant statutory provisions. 12. Besides, it may be noted that one year has already passed since the passing of the attachment order and hence, in view of the provisions of sub-section (2) of section 45 of the GVAT Act, such order would cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1). However, on behalf of the respondents, it has been contended that the provisional attachment stands extended in view of the order dated 31.08.2017 (Annexure "H") made by the Commercial Tax Officer. The said order, in turn, has been made with reference to an order dated 6.9.2016 of the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
