Assessee to file rejoinder affidavit as deptt. seized bank accounts for getting refund of unutilised ITC fraudulently: Bombay HC

Case details:  Fine Exime (P.) Ltd. v. Union of India - [2021] 128 taxmann.com 111 (Bombay)

Judiciary and Counsel Details

• • Ujjal Bhuyan and Milind N. Jadhav, JJ. 

Facts of the Case

The petitioner filed a writ petition assailing legality and validity of attachment of its bank account by Competent Authority. The revenue opposing petition stated that petitioner had obtained refund of unutilised input tax credit fraudulently as a result of which an amount of Rs. 5.20 crores was credited in its bank account.

High Court Held

The Honorable High Court noted that the revenue imposed allegations on the petitioner that it had obtained refund of unutilized input tax credit under section 54 of the Central Goods and Services Tax Act, 2017 fraudulently as a result of which an amount of Rs. 5.20 crores was credited in the bank account. Therefore, the court was of view that petitioner may file rejoinder affidavit to the stand taken by the revenue so that the case can be decided one way or the other. Moreover, without expressing any opinion, the Court directed that in the meanwhile, the revenue shall not appropriate the amount which stands credited in the account of the petitioner.