This court direct as an interim measure that the impugned notice provisionally attaching the bank account of the petitioner shall be stayed subject to petitioner furnishing bank guarantee of a nationalized bank to the extent of 50% of the differential amount i.e., the difference between the amount of GST paid and the amount of VAT quantified
Section 83 of the CGST Act — Provisional Attachment of Bank Accounts – The petitioner challenged notice dated 30th September, 2020 issued by the respondent addressed to the Bank under Section 35 of the Maharashtra VAT 2002 provisionally attaching the bank account. The Petitioner is a company engaged in the business of manufacturing and sale of Extra Neutral Alcohol and Rectified Spirit. The petitioner submitted that after introduction of the GST regime, confusion arose about taxability of ENA/RS-whether it should be brought within the tax net of GST or Value Added Tax (VAT) should be levied. The matter is before the GST Council for taking a final decision. State of Maharashtra classified ENA/RS as a VAT leviable item with effect from 24th August, 2017. This was done on the assumption that ENA/RS is classified under VAT which has however been made subject to the decision of GST Council.
Held that:- The Hon’ble High Court directed that the notice dated 30th September, 2020 provisionally attaching the bank account of the petitioner shall be stayed subject to petitioner furnishing bank guarantee of a nationalized bank to the extent of 50% of the differential amount i.e., the difference between the amount of GST paid and the amount of VAT quantified, to respondent within three weeks. List on 3rd December, 2020 for further consideration.
This court direct as an interim measure that the impugned notice provisionally attaching the bank account of the petitioner shall be stayed subject to petitioner furnishing bank guarantee of a nationalized bank to the extent of 50% of the differential amount i.e., the difference between the amount of GST paid and the amount of VAT quantified
Section 83 of the CGST Act — Provisional Attachment of Bank Accounts – The petitioner challenged notice dated 30th September, 2020 issued by the respondent addressed to the Bank under Section 35 of the Maharashtra VAT 2002 provisionally attaching the bank account. The Petitioner is a company engaged in the business of manufacturing and sale of Extra Neutral Alcohol and Rectified Spirit. The petitioner submitted that after introduction of the GST regime, confusion arose about taxability of ENA/RS-whether it should be brought within the tax net of GST or Value Added Tax (VAT) should be levied. The matter is before the GST Council for taking a final decision. State of Maharashtra classified ENA/RS as a VAT leviable item with effect from 24th August, 2017. This was done on the assumption that ENA/RS is classified under VAT which has however been made subject to the decision of GST Council.
Held that:- The Hon’ble High Court directed that the notice dated 30th September, 2020 provisionally attaching the bank account of the petitioner shall be stayed subject to petitioner furnishing bank guarantee of a nationalized bank to the extent of 50% of the differential amount i.e., the difference between the amount of GST paid and the amount of VAT quantified, to respondent within three weeks. List on 3rd December, 2020 for further consideration.