HC quashed provisional attachment order passed without indicating whether opinion is formed by Commissioner

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Provisional Attachment; Basis for formation of opinion;

Case Details: Sree Meenashi Industries v. Additional Chief Secretary/Commissioner of Commercial Tax - [2022] 136 taxmann.com 375 (Madras)

Judiciary and Counsel Details

    • R. Suresh Kumar, J.
    • Nithyaesh Natraj for the Petitioner. 
    • N.R.R. Arun Natarajan for the Respondent.

Facts of the Case

The search was conducted in the premises of petitioner. Thereafter, the Commissioner directed the bank authorities to attach the current account of the petitioner. It filed writ petition against the provisional attachment order passed by the Commissioner.

High Court Held

The Honorable High Court observed that the Commissioner has not followed mandatory guidelines issued by Supreme Court. The provisional attachment order was passed without indicating whether opinion was formed by Commissioner for passing such order and the tangible material was available before him so as to enable him to form such an opinion. Moreover, the objection cum appeal/application made by petitioner as against order of provisional attachment as contemplated under Rule 159 (5) were not considered. Therefore, it was held that impugned order can be construed as an order passed against dictum of Supreme Court and therefore, on that ground itself, was liable to be quashed.

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