Provisional Attachment Not To Hamper Normal Business Activities: Gujarat High court Quashes Attachment Order

Case: Arya Metacast Pvt. Ltd. Versus State of Gujarat
Coram: Justice J.B. Pardiwala and Justice Nisha M. Thakore
Case No.: R/Special Civil Application No. 2787 of 2022
Court Observation:
The Gujrat H. court held that the provisional attachment should not hamper normal business activities of the taxable person. The Court ruled that the power granted under Section 83 of the Gujarat Goods and
Services Tax Act, 2017 should not be used to harass the assessee, nor should it be used in a way that could have an irreversible negative impact on the assessee’s business.
The court quashed the order of the provisional attachment qua the stock of goods, two demat accounts as well as the current account of the writ applicants.

“So far the prayer of the writ applicants with regard to release of electronic items including Mobile Phone, laptop and other documents seized during the search proceedings are concerned, same is also directed to be released forthwith on condition that the writ applicants shall file an undertaking before the respondent no.2 thereby declaring that the aforesaid goods electronic items including mobile phone, laptop and other seized documents shall be retained in its original form and shall not be disposed of pending the investigation, if any.

At the same time, we permit the respondent authorities to secure the original data by availing necessary certificate under Section 65B of the Information and Technology Act.”

Provisional Attachment Not To Hamper Normal Business Activities: Gujarat High court Quashes Attachment Order