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HomeNews
10 Jan 2022 5:30 AM GMT

Gujarat High Court notice to GST department

By: Nilima Pathak
Gujarat High Court notice to GST department

Gujarat High Court notice to GST department It challenged the provisional attachment of cash credit account The petitioner, Manish Scrap Industries assailed the order of the provisional attachment of a cash credit account running in the name of the writ applicant, maintained with the Axis Bank at Vapi, Gujarat. The impugned order was passed by the respondent in the exercise of...

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Gujarat High Court notice to GST department

It challenged the provisional attachment of cash credit account

The petitioner, Manish Scrap Industries assailed the order of the provisional attachment of a cash credit account running in the name of the writ applicant, maintained with the Axis Bank at Vapi, Gujarat.

The impugned order was passed by the respondent in the exercise of the powers under the provision of the CGST Act, 2017.

The cash credit account was opened to enable the writ applicant to borrow the money from the bank for the purpose of its business. The money made available to the assessee would be in the nature of a loan or a cash credit facility. In either case, it meant borrowing money from the bank. In such circumstances, the bank and the applicant did not have a debtor-creditor relationship.

The division bench of Justice J B Pardiwala and Justice Nisha M Thakore ruled that the principal commissioner of CGST, Surat was in contempt. He owed an explanation as to on what basis he distinguished all the orders passed by the court over a period of time.

Nilima Pathak

Nilima Pathak

TAGS:
  • Gujarat High Court 
  • Justice JB Pardiwala 
  • Justice Nisha M Thakore 
  • Goods and Services Tax 
  • Central Goods and Services Tax 
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