GST UPDATE

???? Desk of CA. Praveen Sharma Series-550 ????

DELHI HIGH COURT IN THE CASE OFJV Creatives Pvt. Ltd UNDER SECTION Section 83 of the CGST Act, 2017

?Petitioner's Appeal :The petitioner challenged an order dated 26.06.2024 by the Principal Additional Director General, Directorate General of GST Intelligence, Gurugram, which rejected objections to the provisional attachment of their bank account under Section 83 of the CGST Act.

?Missing Order Copy :The petitioner did not provide the attachment order and claimed they were not given a copy. There was no evidence showing the petitioner requested it from the authorities. The petitioner learned of the attachment from their bank, ICICI Bank, Dwarka, New Delhi.

?Reason for Attachment :The Commissioner found that the petitioner claimed Input Tax Credit (ITC) of Rs. 26,91,938/- from two fake suppliers, M/s Gupta Enterprises and M/s Sunrise Ventures. M/s Gupta Enterprises was found non-existent, with its supposed proprietor, a taxi driver, denying involvement. M/s Sunrise Ventures was linked to a Taekwondo coach, who also denied involvement. Both entities were allegedly created by Shyam Dev Gupta to issue fake invoices.

?Commissioner's Decision: The Commissioner provisionally attached the petitioner's bank account to secure the amount of the disputed ITC.

?Court's Decision : The court found the Commissioner's action justified and necessary to protect revenue interests. The material available to the Commissioner had a direct connection to the decision.

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CA. Praveen Sharma

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