The Bombay High Court quashed the order of Provincial Attachment of Bank Account for Non-consideration of relevant materials.
The petitioner, M/s. Monopoly Innovations Pvt. Ltd. is a private limited company duly registered under the provisions of the Companies Act, 1956. It is a registered unit under the Micro, Small, and Medium Enterprise Development Act, 2006 and, inter alia, engaged in the business of production of chemicals and allied products. It is also registered with the Goods and Services Tax Department.
The case of the respondents essentially is that the petitioner has made a misclassification of the chemical products referred to therein, viz. Methyl Palmitate; Methyl Ester of Soya Oil; and Methyl Lenolanate by not classifying the same under Chapter 2915/2916 attracting 18% GST. Although the Commissioner has indicated that the petitioner’s authorized representative was briefed about the reasons as to why the said chemical products should be classified under Chapter 2915/2916 instead of 1516, there is no discussion in this regard in the impugned order.
The division bench headed by Chief Justice Deepankar Dutta and Justice M.S. Karnik based on the appreciation of the arguments advanced by Mr. Raichandani, Counsel for the petitioner, and Mr. Mishra, Counsel for the respondent and on perusal of the order impugned dated May 21, 2021, opined that the prayer of the petitioner for revoking the orders of provisional attachment ought to be considered de novo by the Commissioner. This is for the reason that although the Commissioner has written a detailed order spread over 9 pages as to why the provisional attachment ought to continue, it suffers from the infirmity of lack of application of mind as well as breach of principles of natural justice.
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