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Gujarat High Court · body

2018 DIGILAW 708 (GUJ)

Siemens Ltd. v. State of Gujarat

2018-05-10

AKIL KURESHI, B.N.KARIA

body2018
ORDER : AKIL KURESHI, J. 1. Petitioner has challenged the action of the respondents in attaching the petitioner's bank accounts in following factual background. 2. The petitioners are registered dealers engaged in providing various construction and engineering related services. For the financial year 2013-14, the Assessing Authority passed an order of assessment on 30.03.2018 raising CST and State VAT demand of Rs.13.54 crores and Rs.16.92 crores (rounded off). Period of limitation for challenging such order is 60 days from the date of receipt of the order. Before such period was over, the respondents started coercive recovery, in furtherance of which, the petitioner's bank accounts came to be attached. 3. In view of such strong measures taken by the respondents, we had issued short notice for hearing the respondents. In response to notice issued, the respondents have appeared through learned AGP who argued that it is not always necessary for the authorities to wait for the full period of limitation before initiating recoveries arising out of the assessments. This question we will examine in an appropriate case. For the present case, we notice that there was no extraordinary reasons why the respondents had to take such drastic measures of attaching the bank account even before statutory period of limitation for filing appeal against assessment order was over. From the record, we notice that the issue arising in the present assessment is a repetitive one. In the earlier years, such questions having been decided against the assessee, appeals were filed. Pending such appeals, stay was granted on condition of pre-deposit of 15% to 20% of the tax demand. 4. Learned counsel for the petitioner submitted that appeal is filed by now along with application for stay and waiver of pre-deposit. 5. In facts of the present case therefore, we provide a similar condition of pre-deposit in the present petition itself, subject to fulfillment of which, the attachment of the bank account shall be lifted. 6. Under the circumstances, the petition is disposed with following directions: I. The petitioner shall deposit 15% of the principal tax demand of CST as well as State VAT latest by 25.05.2018. II. Upon such deposit, the petitioner's appeal will be entertained on merits treating the requirement of pre-deposit having been satisfied. Pending such appeal, there shall be stay against further recovery arising out of the order of assessment challenged in the appeal. III. II. Upon such deposit, the petitioner's appeal will be entertained on merits treating the requirement of pre-deposit having been satisfied. Pending such appeal, there shall be stay against further recovery arising out of the order of assessment challenged in the appeal. III. The petitioner shall file an undertaking latest by 11.05.2018 of the responsible officer of the petitioner no.1-company that the requirement of pre-deposit shall be satisfied as provided above. IV. The attachment of the petitioner's bank account is hereby lifted. 7. Petition is disposed of accordingly.