Section 83 of the CGST Act, 2017 —– Provisional Attachment of Bank Accounts -—- The petitioner prayed to set aside attachment notice dated 06.01.2022, issued under Section 83 of the Act and further prayed to direct the respondents to de-freeze bank account. The petitioner wanted to purchase certain goods from one M/s. Raja Traders and paid advance amount of approximately Rs. 20 lakhs. The goods were never supplied nor advance amount paid was returned. The respondent contended that M/s. Raja Traders availed GST refund fraudulently and that there was no transaction of sale or purchase with the petitioner. The advocate for the petitioner submitted that section 83 of the Act comes into operation when proceedings under either of the sections 62, 63, 64, 67 or Sections 73 and 74 were pending. The court relied upon the decision of the Supreme Court in the case of Radha Krishan Industries vs. State of HP and observed that that after initiation of any proceedings in Chapter XII, Chapter XIV and Chapter XV, the Commissioner may in order to protect the interest of the Government revenue, provisionally attach the property. The pendency of the proceedings is therefore sine qua non for exercise of powers of provisional attachment. No proceedings were pending in the matter.

Held that:- The Hon’ble High Court set aside the the attachment order dated 6.1.2022. The respondent authorities may continue to proceed further pursuant to the summons dated 21.01.2022 and are at liberty to consider imposing the provisional attachment in accordance with law.