{"id":11640,"date":"2021-04-24T14:38:29","date_gmt":"2021-04-24T09:08:29","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=11640"},"modified":"2023-07-11T22:29:55","modified_gmt":"2023-07-11T16:59:55","slug":"gst-provisional-attachment-power-draconian-on-provisional-attachment-of-bank-account-under-gst-to-be-exercised-in-compliant-of-procedure","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/gst-provisional-attachment-power-draconian-on-provisional-attachment-of-bank-account-under-gst-to-be-exercised-in-compliant-of-procedure\/","title":{"rendered":"GST: Power Draconian Attachment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e165bd4e4b5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e165bd4e4b5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/gst-provisional-attachment-power-draconian-on-provisional-attachment-of-bank-account-under-gst-to-be-exercised-in-compliant-of-procedure\/#GST_Provisional_Attachment_Power_Draconian_on_the_provisional_attachment_of_Bank_Account_under_GST_to_be_exercised_in_compliant_of_procedure\" title=\"GST Provisional Attachment Power Draconian on the provisional attachment of Bank Account under GST, to be exercised in compliant of procedure:\">GST Provisional Attachment Power Draconian on the provisional attachment of Bank Account under GST, to be exercised in compliant of procedure:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/gst-provisional-attachment-power-draconian-on-provisional-attachment-of-bank-account-under-gst-to-be-exercised-in-compliant-of-procedure\/#Radha_Krishan_Industries_Vs_State_of_Himachal_Pradesh_Supreme_Court\" title=\"Radha Krishan Industries Vs State of Himachal Pradesh (Supreme Court)\">Radha Krishan Industries Vs State of Himachal Pradesh (Supreme Court)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/gst-provisional-attachment-power-draconian-on-provisional-attachment-of-bank-account-under-gst-to-be-exercised-in-compliant-of-procedure\/#The_SC_Bench_added_that\" title=\"The SC Bench added that\">The SC Bench added that<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"GST_Provisional_Attachment_Power_Draconian_on_the_provisional_attachment_of_Bank_Account_under_GST_to_be_exercised_in_compliant_of_procedure\"><\/span><strong><a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">GST<\/a> Provisional Attachment Power Draconian on the provisional attachment of Bank Account under GST, to be exercised in compliant of procedure:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_11690\" aria-describedby=\"caption-attachment-11690\" style=\"width: 824px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/1-45.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11690\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/1-45-1024x724.jpg\" alt=\"www.carajput.com; GST \" width=\"824\" height=\"583\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/1-45-1024x724.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/1-45-300x212.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/04\/1-45-768x543.jpg 768w\" sizes=\"(max-width: 824px) 100vw, 824px\" \/><\/a><figcaption id=\"caption-attachment-11690\" class=\"wp-caption-text\">www.carajput.com; GST<\/figcaption><\/figure>\n<h4><span class=\"ez-toc-section\" id=\"Radha_Krishan_Industries_Vs_State_of_Himachal_Pradesh_Supreme_Court\"><\/span><span style=\"color: #ffcc00;\"><strong>Radha Krishan Industries Vs State of Himachal Pradesh (Supreme Court)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Supreme Court in its recent judgment in the case of M\/s. Radha Krishan Industries v. State of Himachal Pradesh &amp; Ors. has laid down the law on provisional attachment proceedings in the <a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">GST regime<\/a>.<\/p>\n<p>In his recent judgment in SC has laid down the Law on the Provisional Attachment Proceedings under the GST regime for Radha Krishan Industries c. State of Himachal Pradesh &amp; Ors.<\/p>\n<p>Judge Chandrachud also asked the officers to balance the protection of state income with authentic businesses. &#8220;The message must percussion to the actual authorities in order to make the <a href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-applicable-on-escalated-value-of-contract-mah-aar\/\"><span style=\"color: #0000ff;\">GST Act<\/span><\/a> workable.&#8221;<\/p>\n<p><em><u><strong>Read more about:<\/strong> <\/u><strong><a href=\"https:\/\/carajput.com\/blog\/itc-on-marketing-expense-sales-promotional-schemes\/\">ITC on Marketing Expenses\/Sales Promotion Scheme<\/a>\u00a0<\/strong><\/em><\/p>\n<p><strong><em><u>Read more about:<\/u><\/em><\/strong><u> <\/u><strong><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties &amp; Appeals<\/a><\/em><\/strong><\/p>\n<p>&#8216;The Parliament aimed to create a citizens-friendly fiscal structure for GST,&#8217; but called it a &#8216;draconian preemptive strike,&#8217; a temporary attachment. In the event, Radha Krishna Industries vs Himachal Pradesh State was later rejected by the Apex Court.<\/p>\n<p>At the hearing, Justice Chandrachud observed orally that the tax collector should not see all &#8220;companies as fraudulent,&#8221; and said it was necessary for the country to emerge from this attitude. &#8220;You cannot even start attaching property because of the fact that 12-crore tax (by Radha Krishna Industry) is still owing.<\/p>\n<p>It&#8217;s understandable if there is any alienation or if the assessee is dissolving or liquidating&#8230; But you cannot start attaching and even block receivables simply because you have the account numbers,&#8221; the judge said.<\/p>\n<p>The SC Bench added that a tax officer&#8217;s evaluation mechanism should be introduced to inculcate accountability. It stated that the tax officer should be made accountable if the huge tax request raised by the tax department is drastically reduced by the appellate tribunal or the Supreme Court.<\/p>\n<p>Judge Chandrachud also asked the officers to balance the protection of government revenue with genuine businesses. &#8220;The message must be transmitted to the actual authorities to make the <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST Act<\/a> feasible&#8230;&#8221;<\/p>\n<p>&#8216;The Parliament aimed to create a citizens-friendly fiscal structure for GST,&#8217; but called it a &#8216;draconian preemptive strike,&#8217; a temporary attachment. In the case of Radha Krishna Industries vs Himachal Pradesh, the Apex Court subsequently reserved its judgment.<\/p>\n<p>At the hearing, Justice Chandrachud observed orally that the tax collector should not see all &#8220;companies as fraudulent,&#8221; and said it was necessary for the country to emerge from this attitude. &#8220;You cannot even start attaching property because of the fact that 12-crore tax (by Radha Krishna Industry) is still owing.<\/p>\n<p>If there is a loss of assets or if the assessee winds up or winds up, But you cannot start attaching and even block receivables simply because you have the account numbers,&#8221; the judge said.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_SC_Bench_added_that\"><\/span><span style=\"color: #000080;\">The SC Bench added that<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A tax officer&#8217;s evaluation mechanism should be introduced to inculcate accountability.<\/li>\n<li>It stated that the tax officer should be made accountable if the huge tax request raised by the tax department is drastically reduced by the appellate tribunal or the Supreme Court.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>GST Provisional Attachment Power Draconian on the provisional attachment of Bank Account under GST, to be exercised in compliant of procedure: Radha Krishan Industries Vs State of Himachal Pradesh (Supreme Court) Supreme Court in its recent judgment in the case of M\/s. Radha Krishan Industries v. State of Himachal Pradesh &amp; Ors. has laid down &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[9859],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11640"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=11640"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11640\/revisions"}],"predecessor-version":[{"id":23330,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/11640\/revisions\/23330"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=11640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=11640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=11640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}