📰 𝗗𝗲𝗹𝗵𝗶 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗜𝗧𝗖 𝗖𝗹𝗮𝗶𝗺𝗲𝗱 𝗼𝗻 𝗔𝗹𝗹𝗲𝗴𝗲𝗱 𝗙𝗮𝗸𝗲 𝗦𝘂𝗽𝗽𝗹𝗶𝗲𝘀; 𝗕𝗮𝗻𝗸 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗔𝘁𝘁𝗮𝗰𝗵𝗺𝗲𝗻𝘁 𝗨𝗽𝗵𝗲𝗹𝗱 📢 The bench of Justice Vibhu Bakhru and Justice Sachin Datta observed,

"The exercise of power by the Commissioner was not unwarranted. The Commissioner had found it necessary to provisionally attach the petitioner's bank account to protect the interest of the department."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: JV Creatives Pvt. Ltd. vs. Principal Additional Director General, DGGI, Gurugram Zonal Unit, Gurugram and Anr 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: W.P.(C) 10042/2024, CM APPL. 41048/2024, CM APPL. 41163/2024

𝗜𝘀𝘀𝘂𝗲: The petitioner challenged the provisional attachment of their bank account by the Commissioner, who acted to secure the amount of input tax credit (ITC) claimed on allegedly fake supplies amounting to Rs. 26.91 lakhs.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The petitioner was informed by ICICI Bank that their account had been provisionally attached. Investigations revealed that ITC was claimed from two suppliers, M/s Gupta Enterprises and M/s Sunrise Ventures, found to be non-existent entities created

by Shyam Dev Gupta. ⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Delhi HC upheld the Commissioner's action to provisionally attach the petitioner's bank account, stating that the material available had a live nexus with the Commissioner's opinion.

The court dismissed the petition, affirming that the provisional attachment was justified to protect the department's interest.

📜 This ruling emphasizes the importance of protecting the department's interests when there is credible evidence of fraud, reinforcing the validity of provisional attachment under the CGST Act. #TaxLaw #arr4nirc #DelhiHighCourt #LegalUpdate