Section 83 of the CGST Act, 2017— Provisional Attachment of property -– The petitioner challenged the communication dated 16.07.2022, whereby proposal of the petitioner to replace provisionally attached movable property in the form of Fixed Deposits and Current Bank Accounts is rejected. The petitioner filed objections before the respondent authorities under Rule 159(5). The Respondent, did not pay any heed to the same. This Court on 17.12.2021 directed the 3rd respondent to pass the order within 3 days. The court observed that the guideline issued by the CBIC dated 23.02.2021 that the movable property, when is attached, the taxable person can offer in lieu of such movable property, any other immovable property which is sufficient to protect the interest of the revenue. The immovable property offered is also of a value not less than the tax amount in dispute. There is nothing which is come on the record on the part of the revenue to show that this is not free from any subsisting charge, liens, mortgages or encumbrances.

Held that:- The Hon’ble High Court directed respondents No.2 and 3 to substitute the property with the amount of fixed deposit provisionally attached, except the amount of fixed deposit of Rs.2,24,99,844/- lying in the current account. The remaining amount, which has been provisionally attached, shall be immediately released along with an undertaking on the part of the petitioner and the partner-cum-owner of the property. It shall need to be ensured by the petitioner and the owner of the property that the same shall, in no manner, be marketed or offered to any other authorities in any of the proceedings. The property in question shall not be subjected to mortgage or future litigation.