Raja Abhishek For NIRC 2024

@abhishekrajaram

3 months ago

โ€ขView on Twitter

๐Ÿ“ฐ ๐—–๐—ฎ๐—น๐—ฐ๐˜‚๐˜๐˜๐—ฎ ๐—›๐—ถ๐—ด๐—ต ๐—–๐—ผ๐˜‚๐—ฟ๐˜ ๐—ฅ๐˜‚๐—น๐—ถ๐—ป๐—ด: ๐—ฃ๐—ฟ๐—ผ๐˜ƒ๐—ถ๐˜€๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—”๐˜๐˜๐—ฎ๐—ฐ๐—ต๐—บ๐—ฒ๐—ป๐˜ ๐—ผ๐—ณ ๐—–๐—ฎ๐˜€๐—ต ๐—–๐—ฟ๐—ฒ๐—ฑ๐—ถ๐˜ ๐—”๐—ฐ๐—ฐ๐—ผ๐˜‚๐—ป๐˜ ๐—ฅ๐˜‚๐—น๐—ฒ๐—ฑ ๐—จ๐—ป๐—ท๐˜‚๐˜€๐˜๐—ถ๐—ณ๐—ถ๐—ฒ๐—ฑ

๐Ÿ“ข The court held, "A cash credit account is a borrowing facility from the bank, not an asset or deposit of the company, and thus cannot be attached by the GST Department for tax recovery."

๐Ÿ” ๐—™๐—ฎ๐—ฐ๐˜๐˜€: ๐—–๐—ฎ๐˜€๐—ฒ ๐—ง๐—ถ๐˜๐—น๐—ฒ: J.L. Enterprises vs Assistant Commissioner, State Tax โ€ข ๐—–๐—ฎ๐˜€๐—ฒ ๐—ก๐˜‚๐—บ๐—ฏ๐—ฒ๐—ฟ: MAT 1001 of 2023 with IA No. CAN 1 of 2023 โ€ข ๐—–๐—ผ๐˜‚๐—ฟ๐˜: Calcutta High Court โ€ข ๐——๐—ฎ๐˜๐—ฒ: 16-Jun-2023

๐—œ๐˜€๐˜€๐˜‚๐—ฒ: J.L. Enterprises faced a provisional attachment order by the GST Department on its cash credit account, aimed at securing potential unpaid taxes. The company argued that a cash credit account represents a bank facility for accessing funds rather than the company's own assets, making it unsuitable for attachment as it belongs to the bank.

Courtโ€™s Solution: Recognizing the nature of cash credit accounts, the court ruled that such accounts do not qualify for provisional attachment under tax laws. It ordered the GST Department to remove the freeze within 10 days, stressing that attachment powers should be used carefully and only when there is a genuine risk of non-payment.

โš– ๐—๐˜‚๐—ฑ๐—ด๐—บ๐—ฒ๐—ป๐˜: The court emphasized that provisional attachment must be applied judiciously and only to a companyโ€™s actual assets. While the GST Department retains other legal avenues for tax recovery, this ruling limits their power to attach cash credit accounts, as they are not directly owned by the business.

๐Ÿ“œ This ruling reinforces the necessity for tax authorities to balance tax recovery with the fair use of legal provisions, ensuring businesses retain access to critical banking facilities. Team GSTpanacea 7503031378

More from @abhishekrajaramReply on Twitter

Page created with TweetHunter

Write your own