Cash Credit Bank Account in GST CAN NOT BE ATTACHED I CA Satbir singh
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Cash Credit Bank account Can not attached in GST
Facts of the case
Provisional attachment of the cash credit account has been passed in the Form GST DRC-22
Taxpayer filed writ Petition
Decision of High Court
The cash credit account, could be said to have been opened to enable the writ applicant to borrow the money from the Bank for the purpose of its business. Any money therefore, that the Bank may make available to the assessee would necessarily be in the nature of a loan or a cash credit facility. In either case, it would be in the nature of borrowing by the writ applicant from the Bank. In such circumstances, the Bank and the writ applicant therefore, do not have the debtor – creditor relationship
Cash credit account could not be provisionally attached in exercise of powers under Section 83 of the Act, 2017