SKYTECH ROLLING MILL PVT. LTD.
Vs.
JOINT COMMISSIONER OF STATE TAX NODAL 1 RAIGAD DIVISION
WRIT PETITION No. 1928 of 2025
HIGH COURT – Bombay
DATED: 10.06.2025
Cash credit account is not “property” under Section 83 MGST Act – Provisional attachment held without jurisdiction and quashed.
Provisional attachment – Whether cash credit account constitutes “property” attachable under Section 83 of MGST Act ? – Department provisionally attached petitioner cash credit account with bank – Cash credit account represents liability owed by account holder to bank for loan facility not property belonging to account holder – Phrase “including bank account” in Section 83 refers to non cash-credit bank accounts – Gujarat High Court precedents support non-attachability of cash credit accounts
Held: Writ petition allowed – Impugned attachment order quashed as wholly without jurisdiction – Cash credit account cannot be treated as “property” under Section 83 – Respondents directed to withdraw attachment letter immediately and inform bank within 24 hours – Order does not preclude recovery through other lawful modes.
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