The impending proceedings under Section 74 of the CGST Act cannot be a ground to exercise power under Section 83 for the provisional attachment.
Attachment of bank accounts— Section 83 of CGST Act—The petitioner has sought for setting aside the provisional attachment of bank accounts The petitioner has sought for setting aside the provisional attachment of bank accounts to defreeze the petitioner's bank accounts.
The following point arises for consideration:-
"Whether the action of respondents in the present case of provisionally attaching the bank accounts of the petitioner by exercise of power under Section 83 of CGST Act is liable to be interfered with?"
In the present case, it must be noticed that the taxable entity to which the proceedings were taken out is an entity other than the petitioner and in the context of which search has been conducted with respect to the petitioner. Admittedly, no proceedings have been initiated under Section 74 of CGST Act as against the petitioner till date. What must also be noticed is that though the statement of objections of the respondent Authority seeks to make out a case that the proceedings under Section 74 of CGST Act are sought to be instituted and in the context of which the provisional attachment under Section 83 of CGST Act is resorted to, the impending proceedings under Section 74 of the CGST Act cannot be a ground to exercise power under Section 83 for the provisional attachment.
Held that— The point for consideration is answered in the affirmative. Accordingly the petition is allowed and the order is set aside.
The impending proceedings under Section 74 of the CGST Act cannot be a ground to exercise power under Section 83 for the provisional attachment.
Attachment of bank accounts— Section 83 of CGST Act—The petitioner has sought for setting aside the provisional attachment of bank accounts The petitioner has sought for setting aside the provisional attachment of bank accounts to defreeze the petitioner's bank accounts.
The following point arises for consideration:-
"Whether the action of respondents in the present case of provisionally attaching the bank accounts of the petitioner by exercise of power under Section 83 of CGST Act is liable to be interfered with?"
In the present case, it must be noticed that the taxable entity to which the proceedings were taken out is an entity other than the petitioner and in the context of which search has been conducted with respect to the petitioner. Admittedly, no proceedings have been initiated under Section 74 of CGST Act as against the petitioner till date. What must also be noticed is that though the statement of objections of the respondent Authority seeks to make out a case that the proceedings under Section 74 of CGST Act are sought to be instituted and in the context of which the provisional attachment under Section 83 of CGST Act is resorted to, the impending proceedings under Section 74 of the CGST Act cannot be a ground to exercise power under Section 83 for the provisional attachment.
Held that— The point for consideration is answered in the affirmative. Accordingly the petition is allowed and the order is set aside.