Section 83 of the CGST Act, 2017 — Provisional Attachment of Bank accounts  —–The petitioner sought quashing of order dated 19.05.2022 directing provisional attachment of the bank accounts of the petitioner under section 83 of the Act. The court in previous order dated 11.05.2022 allowed the writ on the ground that no proceeding under Section 74 was pending as on the date of attachment and amended provisions of Section 83 of the Act were not available when the attachment order was passed. The respondent no.2 has passed the impugned order dated 19.05.2022 and again attached the bank accounts on the ground that proceedings under Sections 67 and 74 has been launched. The court observed that facts of the present case revealed that no proceedings under Section 74 of the Act has yet been initiated. That apart the respondent No.2 while passing the impugned order, has neither recorded his opinion nor referred to any tangible material which necessitated him to pass the impugned provisional attachment order so as to protect the interest of the Government revenue. The basic ingredients required for passing the impugned order under Section 83  as also authoritatively pronounced by Hon’ble Supreme Court and binding upon the respondents under Article 141 of the Constitution of India, have been deliberately and completely ignored by the respondent No.2. The impugned order has been passed in a most arbitrary and illegal manner, consequently, the impugned order can not be sustained and deserves to be quashed with exemplary cost.

Held that:- The Hon’ble High Court quashed the impugned order dated 19.05.2022 under Section 83 and imposed a cost of Rs. 50,000/- which shall be paid by the respondents to the petitioner within two weeks.