The Gujarat High Court quashes order of provisional attachment of properties and set aside order in Form GST DRC-01A as the writ applicant was denied the opportunity of hearing by the Respondent Authority.
The writ applicant, M/s. Formative Tex Fab is engaged in the business of manufacturing different types of knitted fabrics. The writ applicant received a summons issued by the respondent authority under the provisions of Section 70(1) of the GST Act, 2017.
The summons was issued for the purpose of recording the statement of the writ applicant in connection with sale or purchase transactions of the firm. It is the case of the writ applicant that he is 68 years of age and has been medically advised not to travel and stay at home. In response to the summons issued by the respondent to the writ applicant, a letter was addressed to the respondent intimating that the writ applicant would not be in a position to remain present.
The writ applicant had informed the respondent that he has been medically advised not to get out of his house. During that particular period, the writ applicant had also undergone cataract surgery.
Thereafter, the respondent issued DRC-01A in accordance with Rule 142 (1A) of the CGST Rules, 2017. The total liability, as assessed, is to the tune of Rs.69,25,862/- plus interest and penalty.
The residential premises of the writ applicant also came to be provisionally attached vide attachment is in Form GST DRC – 22.
By this writ application under Article 226 of the Constitution of India, the writ applicant, a businessman, has prayed for the reliefs that to quash and to set-aside Form DRC 1A issued by the respondent and to quash and set aside the impugned provisional attachment order i.e. Form GST DRC-22, for both the premises i.e. for factory premises and residential premises issued in Form GST DRC 22 by the respondent authority.
The Division Bench headed by the Chief Justice Vikram Nath noted that the writ applicant had no opportunity to make good his case that all his transactions are legal and free from any doubt.
“We are of the view that one opportunity of hearing should be given to the writ applicant. In such circumstances, we quash and set aside the order passed by the respondent No.4 in Form GST DRC-01A dated 23rd July 2020 and remit the matter to the respondent No.4 for fresh consideration of the matter after giving an opportunity of hearing to the writ applicant,” the bench observed.
Therefore, the bench directed the respondent authority to fix a particular date for the de novo hearing and intimate about the same to the writ applicant in writing. Also directed the writ applicant that upon receipt of the notice from the respondent authority, shall appear on that particular date and make his submissions.
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