The Gujarat High Court directed that no coercive steps shall be taken towards the recovery of the tax until the stay application is decided.
The petitioner, M/s Ruchi Infrastructure has pleaded before the court to direct the Respondent authorities not to take any coercive steps towards the recovery of demand raised pursuant to the passing of the impugned assessment order and direct the Respondents not to lift the bank attachment imposed on the Current Account held with Dena Bank.
Mr. Tushar Hemani, the counsel appearing for the writ applicant submitted that the stay application has also been filed way back in July, 2020.
However, according to Mr. Hemani, no orders have been passed on the stay application. In the meantime, the order came to be passed attaching the current bank account of the writ applicant maintained with the Bank of Baroda, under Section 44 of the VAT Act.
The division bench of Justice J.B. Pardiwala and Justice Ilesh J.Vora held that the attachment of the Current Account held with the Dena Bank (now merged with the Bank of Baroda) is ordered to be lifted. The writ applicant is permitted to operate the said Bank Account.
The court said that the stay application preferred by the writ applicant is pending as on date before the Appellate Authority. Till the stay application is not decided and appropriate order is not passed, no coercive steps shall be taken towards the recovery of the tax pursuant to the order of assessment.
Subscribe Taxscan Premium to view the Judgment
