In recent judgment, High Court has given the judgement that if the dealer has paid whole amount of tax then Assistant Commissioner cannot attach the bank account as well as seizing of goods.

1. Facts of the Case

1. In the given case, Patran Steel Rolling Mill is engaged in the business of manufacturing and supplying of various iron and steel products, viz., TMT bars, etc. Assistant Commissioner, State Tax visited the factory premises of the petitioner company. He carried out the comparison of the physical stocks of raw material and finished goods with recorded the quantity of the same and found that there was a stock difference, inasmuch as physical goods valued at Rs. 51,73,633/- were found in excess in the factory premises when compared to the recorded quantity.

2. According to respondent calculation, petitioner has deposited a sum of Rs.17,00,000/- with the respondent.

3. Moreover respondent also attached bank account of the petitioner.

2. Held

1. The Court, while deciding the case has observed that the tax liability of the petitioner in terms of the goods seized the same would not exceed Rs.13,00,000/-. The petitioner has already deposited a sum of Rs.17, 00,000/- with the respondent.

2. The Court has also held that the amount assessed towards the penalty is concerned, in the absence of any proceedings having been undertaken under the provisions of the GST Act as well as any penalty having been imposed.

3. Further, the Court has categorically cautioned the concerned authorities that while exercising powers under section 83 of The GGST Act, the authorities should try to balance the interest of the Government revenue as well as a dealer to ensure that while the interest of the revenue is safeguarded, the dealer is also in a position to continue with his business, because it is only if the dealer continues with the business that he would generate more revenue.

4. The respondents are directed to forthwith release the above-mentioned bank accounts as well as the seized goods of the petitioner.