GST
TRT-2025-
Bombay High Court
Date:-07-05-25
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 07 May 2025
Parties: M/s Shubh Corporation Vs State of Maharashtra & Ors.
Facts –
- The Petitioner, M/s Shubh Corporation, had its bank account provisionally attached under Section 83 of the MGST Act, 2017, after a search operation under Section 67 in October 2024, where the petitioner claims to have fully cooperated and provided necessary records.
- Despite no ongoing investigation or show cause notice post-November 2024, the bank attachment was imposed suddenly on 27 January 2025, citing proceedings under Section 67.
- The petitioner challenged this attachment, asserting lack of due process and non-furnishing of the material or reasons justifying such a drastic action.
Issue –
- Whether the provisional attachment of the petitioner’s bank account was legally sustainable in the absence of recorded reasons or any pending tax determination?
Order –
- The Division Bench of Hon’ble High Court observed that before the attachment is levied, the Commissioner has to form an opinion that for the purpose of protecting the interest of Government Revenue, it is necessary to attach any property, including the Bank Account of the taxable person. This opinion has to be based on material, and cannot be on the basis of assumptions and presumptions of the Commissioner.
- Till date, no material which led the Commissioner to believe that the attachment is necessary to secure the interest of the Revenue has been communicated to the Petitioner.
- Accordingly, the above Petition succeeds and the impugned order dated 22nd January 2025 is hereby quashed and set aside. Consequently, the Petitioner is permitted to operate its Bank Account.
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