Tarun Fuel Centre vs. State Of Gujarat

SCA/16462/2021HC GujaratGSTCNR GJHC24057083202129 October 2021Bench: HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI,HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK5 pages

AI SummaryRemanded

Facts

The petitioner, Tarun Fuel Centre, a petroleum dealership, is challenging orders dated 12.02.2021, 11.08.2021, and 01.10.2021, issued by respondent no. 3, directing the attachment of its bank account. Additionally, a direction dated 19.08.2019 to BPCL to stop petroleum supply to the petitioner is also under challenge. The petitioner claims these actions are arbitrary. The petitioner states that its lawyer and Chartered Accountant, in collusion, failed to pay Goods and Services Tax (GST) and misled VAT authorities. Two FIRs have been lodged: one on 07.08.2021 for offences under the Indian Penal Code (IPC), and another on 14.10.2021 by the Additional Commissioner of State Tax, also naming the petitioner for various IPC offences and offences under the Prevention of Corruption Act. The petitioner has expressed readiness to pay the outstanding tax liability and has made a representation on 13.09.2021 requesting installments for payment.

Held

The Court chose not to delve into the merits of the matter due to the pendency of criminal complaints (FIRs). The Court directed respondent no. 2 to consider the petitioner's representation dated 13.09.2021, which requested installments for making payment towards the outstanding tax liability. This consideration should also include the request for withdrawal of instructions given to BPCL. This decision is to be made within two weeks from the receipt of the writ, in accordance with the law, and without being influenced by the disposal of the present petition. The Court noted that before any liability is fixed by virtue of the investigation, the concerned authority may decide the representation as per law. If the outcome of this representation is unfavorable to the petitioner, the petitioner is at liberty to pursue legal recourse. The Court did not expressly leave any issue undecided, but rather deferred the decision on the merits pending the outcome of the criminal investigation and the consideration of the representation.

Key Issues

1. Whether the orders dated 12.02.2021, 11.08.2021, and 01.10.2021, directing the attachment of the petitioner's bank account, and the instruction dated 19.08.2019 to BPCL to stop petroleum supply, are arbitrary and unsustainable in law, as argued by the petitioner? The petitioner contends that these actions are arbitrary and seeks their quashing and setting aside. The petitioner also seeks a writ of mandamus directing the withdrawal of the instruction to BPCL. The petitioner's primary grievance stems from the alleged connivance of its legal and financial representatives in not paying GST, leading to the current predicament. The revenue/State's arguments are not explicitly recorded in detail regarding the specific provisions of law governing these actions, beyond the context of the FIRs. 2. Whether the petitioner's representation dated 13.09.2021, requesting installments for tax payment, should be sympathetically considered and decided by respondent no. 2, as argued by the petitioner? The petitioner seeks a direction for respondent no. 2 to sympathetically decide this representation. The revenue/State's stance on this specific request is not detailed.

Sections Cited

Section 406, Section 420, Section 465, Section 467, Section 468, Section 471, Section 167, Section 120(B), Section 13(1)(b), Section 13(1)(c)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/SCA/16462/2021 ORDER DATED: 29/10/2021 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 16462 of 2021 ========================================================== TARUN FUEL CENTRE Versus STATE OF GUJARAT ========================================================== Appearance: MR SIRAJ R GORI(2298) for the Petitioner(s) No. 1 for the Respondent(s) No. 2,3 MR TRUPESH KATHIRIYA, ASST.GOVERNMENT PLEADER/PP(99) for the Respondent(s) No. 1 ========================================================== CORAM: HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Date : 29/10/2021

ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI)

The petitioner is engaged in the business of petroleum dealership. It is aggrieved and dissatisfied by the orders passed by the respondent no.3 on 12.02.2021, 11.08.2021 and 01.10.2021 whereby the directions are issued to the banker of the petitioner to attach the bank account. The further directions also have gone on 19.08.2019 to the BPCL Petroleum Company to stop the supply of the petroleum product to the petiti

The judgment continues below.

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Reproduced from the public record of the Gujarat High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.