The Supreme Court said on Tuesday that under the Goods and Services Tax (GST) Act, it is a harsh decision to order the confiscation of a person’s bank account and property. The apex court has said that the authority cannot use it in an uncontrolled way.
A bench of Justices DY Chandrachud and Justice MR Shah said that the temporary confiscation of property etc. while pending proceedings means that a final decision has not been taken on the final amount due. In such a situation, the temporary confiscation should be in accordance with the procedure and conditions given in the law. The Supreme Court, while interpreting Section-83 of the GST Act of the state on a petition filed by Radhakrishna Industries against the decision of Himachal Pradesh, said these things. The apex court said in its order that the commissioner should always take care that such a provision is not meant for retrospective attack on the property of the people. This should be done when it is extremely necessary to protect the interests of revenue.
Earlier, the High Court had dismissed the writ petition of Radhakrishna Industries against the authority’s decision to temporarily confiscate the property. The company had a liability of Rs 5.03 crore. Radhakrishna Industries had filed a petition in the Supreme Court stating that the provision of confiscation action under Section 83 is ruthless and harsh. Earlier, on April 7, the Supreme Court had reserved the judgment that Parliament intended that the GST be a citizen-friendly tax structure, but the way it is being implemented across the country, it is abolishing its purpose.