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TMI Blog2020 (1) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... different entities. 4. The Respondent-Authorities under the Act initiated an inquiry against an export firm in Delhi - M/s.Maps Global. The Respondent-authorities suspected that M/s. Maps Global was involved in fraudulent availing of Input Tax Credit, and this Input Tax Credit was utilised for payment of export goods, and later a refund was sought. The Respondent-authorities scrutinized the bank account of M/s. Maps Global and noticed that an amount of Rs. 28,50,000/- was transferred to one M/s.Balajee Enterprises, on 19 June 2019 and 12 July 2019. The Respondent-authorities suspected these transactions were fictitious and no material was supplied to M/s.Maps Global. Further, according to Respondent-authorities M/s. Balajee Enterprises transferred an amount of Rs. 1,63,00,000/- to the account of the Petitioner on 17 October 2019. 5. The Directorate General of GST Intelligence issued a summons to the Petitioner on 22 October 2019 to attend on 5 November 2019, referring to inquiry against M/s.Maps Global. The summons stated that the authorities had reason to believe that the Petitioner had facts and documents material for the inquiry. The Petitioner was summoned under section 70 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises. Accordingly to it is prayed that the impugned order be quashed. 8. Mr.Jetly opposing the Petition submitted as follows. The power of provisional attachment is conferred to protect interests of Revenue, and this was a fit case where this power had to be exercised. Investigation is in progress. Money trail is traced from M/s.Maps Global to the Petitioner and inquiry is underway. Action is taken against M/s.Maps Global under section 67 which referred to under section 83 of the Act. The language of section 83 indicates that during the pendency of any proceedings (in this case under section 67 of the Act) if a summons is issued under section 70 to further the inquiry to other taxable persons provisional attachment of bank account of other taxable persons also is permissible and contemplated. He submitted that thus the Petition be dismissed. 9. Under the scheme of Act, levy and collection of tax are provided for in Chapter III, Assessment is under Chapter XII and Inspection, Search, Seizure and Arrest are dealt with under Chapter XIV. Chapter XV which deals with Demand and Recovery. This chapter provides for provisional attachment under section 83. Section 83, under which the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person. As per information available with the department, it has come to my notice that the said person has a -
< X X X X Extracts X X X X X X X X Extracts X X X X ..... een launched against the Petitioner as aforesaid taxable person under section 67 & 70 of the Act. Thereafter the authorities have proceeded to issue the order. 12. The impugned order dated 22 October 2019 proceeds on the assertion that proceedings have been launched against the Petitioner under section 67 section 70 of the Act. As far as section 67, i.e. search is concerned, it is an uncontroverted position that no proceedings have been initiated against the Petitioner under section 67 of the Act. On the date of provisional attachment of the bank account, only a summons under of the Act was issued to the Petitioner. Section 70 is not mentioned in Section 83 of the Act. No proceedings were pending against the Petitioner under section 62, 63, 64, 73 and 74 of the Act. Thus the Petitioner contends that power under section 83 could not have been invoked against the Petitioner. 13. Primary defence of the Respondents is that even if section 62, 63, 64, 67, 73 and 74 mentioned in section 83 of the Act are not referable to the case of the Petitioner, since a summons is issued to the Petitioner in pursuant to the inquiry initiated against M/s.Maps Global under section 67 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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