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  • Writer's picturesanjeev sabharwal

Case Laws

Updated: Sep 20, 2021

Sterne India Pvt Ltd Vs UoI

GST - The petitioner-company is engaged in trading in White Goods - In the course of investigation of some third parties, who were found to be bogus, the Revenue claimed that the petitioner had issued fake invoices to these entities without any actual supply of goods & that such entities were seeking ITC despite being ineligible - The petitioner's Head Office was searched & statements of director were recorded - Summons were later issued to them - Subsequently, the Revenue sought for the bank details of the petitioner and then proceeded to place attachment over the same - Hence the petitioner filed the present petition seeking to challenge the validity of provisional attachment of the petitioner's bank account - The petitioner sought that directions be issued to lift the attachment over it's accounts.

Held - Order of provisional attachment is required to be communicated to the party affected and this requirement is necessary for a meaningful exercise of the right conferred under Rule 159(2) of CGST Rules - In light of wide discretion granted to the Commissioner for formation of an opinion, greater the power and wider the discretion, the same is to be exercised with greater circumspection - If power is sought to be exercised, it has to be on the basis of substantive material, which is absent in the present case: HC

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