Gujarat HC in the case of M/s Formative Tex Fab Versus State of Gujarat
M/s Formative Tex Fab
State of Gujarat
Facts of the Case:
By this writ application under Article 226 of the Constitution of India, the writ applicant, a partnership firm through one of its partners, has prayed for the following reliefs:
“a) to declare the impugned order No.GSL/S.5(1)/S.83/B.14 dated 15.01.2018 issued by respondent No.2, as without authority of law and ultra vires the provisions of the Gujarat Goods and Services Tax Act.
b) To quash and set aside the impugned Form DRC 22 dated 24.01.2020 attaching the properties and DRC 22 dated 23.09.2020 attaching the bank accounts and fixed deposits, issued by respondent no.4.
c) Pending admission, hearing, and till final disposal of this petition, Your Lordships may be pleased to direct the respondents C/SCA/14059/2020 ORDER
(i) To release the bank accounts provisionally attached by respondent no.4, as in Annexure L;
(ii) Not to take any coercive action against the petitioner.
d) To issue an order(s), direction(s), the writ(s), or any other relief(s) as this Hon’ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice.
e) To award costs of and incidental to this application be paid by the respondents.”
It appears from the materials on record that this is the third round of litigation. Mr. Chintan Dave, the learned A.G.P. appearing for the State respondent, on an advanced copy served to him of the writ application, invited the attention of this Court to the two orders passed by a Coordinate Bench dated 20th August 2020 and 16th September 2020 respectively. These two orders are annexed on page: 26 (Annexure: A) and page: 30 (Annexure: B) respectively to this writ application.
The Decision of the Court:
We are of the view that the provisional attachment of the cash credit account bearing No.510044021166 maintained with the Kotak Bank is not sustainable in law. The law in this regard is no longer res Integra. In such circumstances, we quash and set aside the order of provisional attachment dated 23rd September 2020 passed in the Form GST DRC – 22 annexed on page: 51A of the writ application. So far as the other reliefs prayed for in the writ application are concerned, those are not pressed by Mr. Poddar.
With the above, this writ application stands disposed of.