Anjani Impex VS State Of Gujarat

The writ applicant, represented by a partner of a partnership firm, has filed a writ application under Article 226 of the Constitution of India seeking various reliefs. Firstly, they request the quashing of Form DRC IA dated 23.07.2020 issued by respondent no.4. Secondly, they seek to annul the provisional attachment order, specifically Form GST DRC-22 for both factory and residential premises, issued on 24.07.2020 by respondent no.4. Thirdly, they demand the transfer of proceedings to the CGST department since it has already initiated the same. Lastly, they request interim relief pending admission, hearing, and final disposal of the case.

The partnership firm, acting through one of its partners, has filed a writ application under Article 226 of the Constitution of India seeking several reliefs. These include the quashing of Form DRC IA dated 23.07.2020 and the provisional attachment order (Form GST DRC-22) issued on 24.07.2020 by respondent no.4. Additionally, they request the transfer of proceedings to the CGST department, lifting the attachment of factory premises, staying the operation of Form GST DRC 01A, and halting coercive actions against the petitioner until the final disposal of the petition. They further ask for any other relief deemed fit by the court and for costs to be borne by the respondents.

The partnership firm, registered under GST, is involved in manufacturing various textile fabrics. An inquiry has been initiated against the firm by the CGST Department, Surat, with summons issued under Section 70(1) of the Act, 2017, dated 30th June, 2020. Pending the inquiry, the Department has taken two actions: issuing an order in Form GST DRC-01A dated 23rd July, 2020, and passing an order of provisional attachment of property under Section 83 of the Act in Form GST DRC-22.

The writ application under Article 226 of the Constitution of India seeks various reliefs from the court on behalf of a partnership firm, represented by one of its partners. These include quashing a Form DRC IA dated 23.07.2020 and a provisional attachment order (Form GST DRC-22) issued on 24.07.2020 by respondent no.4, as well as transferring the proceedings to the CGST department. The application also requests interim relief, such as lifting the attachment of factory premises, staying the operation of Form GST DRC 01A, and preventing coercive action against the petitioner. Additionally, the applicant asks for any other relief deemed fit by the court, costs to be borne by the respondents, and expresses gratitude.

The firm, engaged in textile fabric manufacturing and registered under GST, is under inquiry by the CGST Department, Surat. Summons were issued on 30th June, 2020, under Section 70(1) of the Act, 2017. Pending the inquiry, two actions were taken by the Department: issuance of Form GST DRC-01A dated 23rd July, 2020, and provisional attachment of property under Section 83 of the Act (Form GST DRC-22).

In court, Mr. Avinash Podar, representing the writ applicant, and Mr. Chintan Dave, representing the State-respondents, presented their arguments.

The court decides not to interfere with the order passed in Form GST DRC-01A dated 23rd July, 2020. However, it finds the order of provisional attachment of immovable properties, including an industrial unit and residential premises, under Section 83 of the Act unsustainable in law. The court quotes the order passed in Form GST DRC-22 and makes this determination.

In this writ application under Article 226 of the Constitution of India, a partnership firm, represented by one of its partners, seeks various reliefs from the court. These include the annulment of Form DRC IA and Form GST DRC-22, both issued by respondent no.4, as well as the transfer of proceedings to the CGST department. Additionally, the applicant requests the court to lift the attachment of its factory premises, stay the operation of Form GST DRC 01A, and refrain from taking coercive action against the petitioner. The firm also seeks any other relief deemed fit by the court, along with costs to be paid by the respondents.

The firm, engaged in manufacturing textile fabrics, is under inquiry by the CGST Department, Surat, as evidenced by summons dated 30th June, 2020. Subsequently, the department issued Form GST DRC-01A and Form GST DRC-22, leading the firm to file this writ application.

During the hearing, the court heard arguments from both the counsel for the writ applicant and the learned AGP representing the State-respondents. While the court chose not to interfere with the order passed in Form GST DRC-01A, it found the provisional attachment of the firm’s immovable properties unsustainable under Section 83 of the Act.

Section 83 of the Act outlines the necessity of forming an opinion to protect the government’s revenue. The court emphasized the importance of having credible material for forming such an opinion, stating that it cannot be based on imaginary grounds or wishful thinking. The opinion must be supported by relevant material to justify provisional attachment and protect citizens from vexatious proceedings.

Thus, the court ruled in favor of the firm, setting aside the provisional attachment order while allowing other aspects of the inquiry to proceed.

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