Section 83 of the CGST Act, 2017 — Provisional Attachment Order –— The applicant challenged the provisional attachment order passed under the Act. The counsel for applicant submitted that opinion by the Commissioner should be strictly adhered to before passing order of provisional attachment. The order is without any base of tangible material. He relied upon the decision of the Supreme Court in the case of Radhe Krishan Industries Vs. State of Himachal Pradesh and relied the Circular No. CBEC-20/16/05/2021-GST dated 23.02.2021, whereby the Board have laid down various guidelines for provisional attachment of the property under Section 83 of the Act.  The court observed that the respondent no.2, inspite of repeated reminder by this Court in various decisions has once again overlooked the guidelines issued by the Board dated 23.02.2021.This power should be exercised with extreme care and caution and it should not be used as a tool to harass the assesse. The Supreme Court in Radhe Krishan Industries Judgment has held that, the power to order a provisional attachment of the property of the taxable person including a bank account is draconian in nature and the conditions which are prescribed by the statute for a valid exercise of the power must be strictly fulfilled. In the present case, the respondent has not only provisionally attached the stock of goods lying at the factory premise of the writ applicants, at the same time, he has also provisionally attached the demat account and current account. These are the valuable assets which are otherwise necessary for running of the business. Time and again, this Court as well as even the instructions issued, has directed the proper officer to ensure that their action of the provisional attachment should not hamper normal business activities of the taxable person.

Held that:- The Hon’ble High Court quashed and set aside the order of the provisional attachment dated 27.11.2021 qua the stock of goods, two demat accounts as well as current account is concerned. So far the prayer of the applicants with regard to release of electronic items seized during the search proceedings are concerned, same is also directed to be released forthwith on condition that the writ applicants shall file an undertaking before the respondent thereby declaring that the aforesaid goods electronic items shall be retained in its original form and shall not be disposed of pending the investigation, if any.