03.03.2022- Provisional Attachment Of The Goods, Stock, Receivable And The Property Of A Partner Of The Partnership Firm/LLP Is Not Permissible Under Section 83 Of The CGST Act

The Hon’ble High Court of Gujarat vide its order dated 27th January 2022 in the matter of M/s Utkarsh Ispat LLP.  Vs. State of Gujarat in R/Special Civil Application No. 188 of 2022 held that the provisionally attaching the property of the one of the partners of partnership along with provisional attachment of the stock lying in the factory and the sundry debtors is not permissible under Section 83 of the CGST Act.

The writ applicant preferred the Writ Petition before the Hon’ble High Court praying for quashing of orders of provisional attachment in FORM GST DRC-22 dated 25.11.2021, 26.11.2021, 27.11.2021 issued by the respondents whereby the property of one of the partners of the Petitioner’s firm, stock lying in the factory and the sundry debtors were provisionally attached.

Facts:

  • The writ applicant is a limited liability partnership firm and is engaged in the business of procuring various types of M. S. Scrap used for the manufacturing of the TMT bars.
  • The GST Department undertook a search at the registered premises of the writ applicant and the residential premise of the one of the partners under sub-section 2 of Section 67. The search was conducted on the ground of availment of ITC by the writ applicant on the basis of fake invoices issued by fictitious firms without any movement of goods.
  • During the pendency of the search proceedings the respondents passed orders in FORM GST DRC-22 provisionally attaching the multiple properties like the factory premises, plant and machinery and the bank accounts of the writ applicant under Section 83 of the CGST.To read more subscribe today: www.taxo.online

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