Since the proceedings are initiated by the authorities in connection with the third parties, invocation of powers under Section 83 are not available with the respondents.
Section 83 of the CGST Act, 2017 — Attachment of Bank Accounts —–The petitioner is a commission agent at Agricultural Produce Market Committee. His bank accounts have been attached under section 83 of the Act. The respondent orally conveyed him that because of voluminous transactions with the third party, which is involved in violation of the provisions of the Act, his account has been freezed. The respondent submitted that case has been booked against third party on the ground of procuring bogus invoices and claiming refund of accumulated ITC against those bogus invoices. The petitioner counsel submitted that none of the proceedings under Sections 62, 63, 67, 73 or 74 of the Act are pending against him. So far as third party is concerned, provision of Section 83 to provisionally attach the bank account being a drastic power. The court observed that there are no proceedings against the present petitioner under Sections 62, 63, 64, 67, 73 and 74 of the Act. There is no reason therefore, to invoke section 83 against the writ applicant and proceedings. Since the proceedings are initiated by the authorities in connection with the third parties, invocation of powers under Section 83 are not available with the respondents.
Held that:- The Hon’ble High Court quashed the communication dated 28.08.2020. The attachment is ordered to be lifted and the petitioner is permitted to operate his bank account.
Since the proceedings are initiated by the authorities in connection with the third parties, invocation of powers under Section 83 are not available with the respondents.
Section 83 of the CGST Act, 2017 — Attachment of Bank Accounts —–The petitioner is a commission agent at Agricultural Produce Market Committee. His bank accounts have been attached under section 83 of the Act. The respondent orally conveyed him that because of voluminous transactions with the third party, which is involved in violation of the provisions of the Act, his account has been freezed. The respondent submitted that case has been booked against third party on the ground of procuring bogus invoices and claiming refund of accumulated ITC against those bogus invoices. The petitioner counsel submitted that none of the proceedings under Sections 62, 63, 67, 73 or 74 of the Act are pending against him. So far as third party is concerned, provision of Section 83 to provisionally attach the bank account being a drastic power. The court observed that there are no proceedings against the present petitioner under Sections 62, 63, 64, 67, 73 and 74 of the Act. There is no reason therefore, to invoke section 83 against the writ applicant and proceedings. Since the proceedings are initiated by the authorities in connection with the third parties, invocation of powers under Section 83 are not available with the respondents.
Held that:- The Hon’ble High Court quashed the communication dated 28.08.2020. The attachment is ordered to be lifted and the petitioner is permitted to operate his bank account.