Section 83 of the CGST Act, 2017--- Provisional Attachment of Bank Account —- The petitioner sought quashing the action of Respondents regarding blocking of the sanctioned refund of ITC and to direct the respondent no. 4 to unblock the amount lying in the bank account of Petitioner. The respondent blocked the petitioner’s bank account, which is the refund of the input tax credited to the bank account. The court observed that the said action has been taken on essentially three grounds. First, that there has been a mismatch in the payment made by the petitioner to the supplier in respect of the goods that are stated to have been exported. Second, it is stated that there are serious doubts as to whether any goods were procured from the supplier in question. Third, the petitioner had also procured goods from another supplier whose registration has been suo motu cancelled. The counsel for the respondent stated that in addition to the input credit, a sum of approximately Rs. 15 lacs had been released earlier. The court observed that the order issued under Section 83 would be confined to freezing the petitioner’s bank account to the extent of Rs. 50 lacs.

Held that:- The Hon’ble Court directed the the petitioner would not be entitled to withdraw any amount from the bank account till a credit balance of Rs. 50 lacs is achieved.