TMI Blog2022 (12) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... at no proceedings were pending. The summons under section 70(1) of the CGST Act and GGST Act came to be issued only on 21.01.2022. The very invocation of powers and issuance of order dated 06.01.2022 was therefore in absence of any proceedings initiated. The powers under section 83 could not have been exercised. The impugned order stands illegal when it seeks to provisionally attach the bank account of the petitioner. It is only on this ground that the impugned Order is liable to be set aside. The attachment order dated 6.1.2022 issued by the respondent no.3 is set aside. The respondent authorities may continue to proceed further pursuant to the summons dated 21.01.2022 and are at liberty to consider imposing the provisional attachment u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the summons dated 21.02.2022 issued under section 70(1) of the CGST Act. 3. The petitioner, engaged in the business of trading of products such as garments, footwear, leather accessories, amongst is located at Mumbai and carries out the business from the address shown. It was stated that the petitioner does not have any commercial presence in the State of Gujarat and is not registered under the Gujarat State Tax laws. 3.1 It is the case of the petitioner that the petitioner wanted to purchase certain goods from one M/s. Raja Traders situated at Ahmedabad and for that purpose the petitioner paid advance amount of approximately Rs. 20 lakhs. The petitioner has further contended that the goods were never supplied nor advance amount paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent authority that the GST number was used for bogus billing activity without actual movement of goods as well as to generate and transfer the amount in violation of the provisions of CGST Act and the petitioner was found to be a part of the syndicate who claimed and availed GST refund fraudulently without any business transaction like sale/purchase by transferring the amount in the bank account. 3.6 The respondent no.3 thereafter issued summons dated 21.01.2022 under section 70(1) of the CGST and GGST Act on the same grounds mentioned in the provisional attachment order dated 06.01.2022 upon the petitioner to appear in person on 28.1.2022 before respondent no.3. 4. Learned advocate for the petitioner submitted that as the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent relied on the affidavit-in-reply filed on behalf of respondent no.3, to contend inter alia that it came to the knowledge of the respondent authority that certain persons had created bogus companies and firms in the name of their relatives and they appointed themselves as directors and fraud was practised in respect of refund amount of Rs. 29 crores. Various companies were referred which according to the respondents were engaged in such fraud and availing the credit and that they were not carrying out any business activities. 4.5 Learned advocate for the respondent stated that the search operation of M/s. Raja Traders was carried out on 28.12.2021 to 31.12.2021, various irregularities and illegal activities were highlighted including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority to protect the interest of the Government revenue as could be seen from the plain reading of the section. The section could be operated during the pendency of the proceedings under sections 62, 63, 64, 67, 73 or 74 of the Act. Section 62 deals with the assessment in cases where returns were not filed whereas sections 63 and 64 are in relation to assessment of unregistered persons and assessment in special cases respectively. Section 67 deals with the search and seizure whereas sections 73 and 74 provides for show-cause notice for recovery of the dues. If any of the proceedings in the aforesaid sections are pending, the power under section 83 of the Act may be exercised. 5.2 In Radha Krishan Industries vs. State of HP [(2021) 6 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner to 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, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed. 5.5 In other words, the ratio of the decision that there must be pendency of proceedings, applies to the post amended section also. It says that after initiation of any proceedings in Chapter XII, Chapter XIV and Chapter XV, the Commissioner may in order to protect the interest of the Government revenue, provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
