Section 83 of the CGST Act, 2017 —– Provisional Attachment of Bank Accounts —- The petitioner prayed  to set aside communication dated 7.5.2022 alongwith Satisfactory Note/order dated 6.5.2022, whereby the Current Account of the petitioner with the came to be attached. The advocate for the petitioner submitted that no demand has been raised pursuant to framing of assessment by the authorities and the petitioner did not have opportunity to put forth his case. The petitioner finds it difficult to run the business and make a living. The petitioner was ready to give the bank guarantee of the tax amount. The court observed that the arrears of tax is of Rs. 6,10,511/- plus the interest amount of Rs. 91,526/- and penalty of an amount of Rs. 91,577/-. The court does not find any reasonableness in the submission of respondent that the bank guarantee amount should cover the interest and penalty also, more particularly when the adjudicatory process against the petitioner is yet to complete. It would be just and proper to require the petitioner to submit the bank guarantee in respect of the tax amount of Rs. 6,10,511/-. This would adequately secure the tax amount for the department and further take care the interests of the revenue at this stage.

Held that:- The Hon’ble High Court set aside the communication dated 7.5.2022 and the satisfactory note/order dated 6.5.2022 and directed that the attachment shall be lifted on the condition that the petitioner furnishes to the competent authority of the respondent authority the bank guarantee for the amount equivalent to Rs. 6,10,511/-