KUSHAL LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under article 226 of the Constitution of India, the petitioners have challenged the provisional attachment orders dated 18.10.2019 passed under section 83 of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017 (hereinafter collectively referred to as the "GST Acts") provisionally attaching the bank accounts of the petitioners. The petitioners seek a further direction to the respondents to forthwith release the provisional attachment of other bank accounts of the petitioners copies of which have not been served upon the petitioners.

(2.) The petitioners are engaged in the manufacture and sale of paper and paper waste since the year 2000 and are also engaged in trading various commodities. The petitioners are listed with Bombay Stock Exchange and are duly registered under the GST Acts. According to the petitioners, they duly file returns and discharge tax liability under the GST Acts.

(3.) It is the case of the petitioners that they entered into certain transactions of sale of goods on "as is where is" basis in the year 2017-18. The goods were purchased from registered persons under the GST Acts on payment of tax under the GST Acts and they were in turn sold to other registered persons. Input tax credit was claimed of tax paid on purchases which was utilized towards payment of output tax liability and the differential tax amount was paid through electronic cash ledger.