Section 83 of the CGST Act, 2017 –– Provisional Attachment of Bank Accounts —- The appellant challenged the order dated 05.10.2021 passed by the learned single Judge, whereby, the proceedings dated 23.11.2020 attaching the first respondent’s bank accounts in terms of Section 83 of Act, was set aside. The counsel for the appellants contended that the proceedings initiated under section 67 and search of the business premises on 09.01.2020 are in respect of investigation for clandestine removal of goods of various types of metal scraps without any tax invoices. The respondent availed and utilized ineligible ITC based on such invoices to offset their output tax liability. Thus, there is no error in passing the order impugned in the interest of the Government revenue, but the learned single judge erred in setting aside the same. The court observed that the learned single Judge while setting aside the order of attachment, has observed that the 'opinion' of the second appellant is far more cryptic revealing total non-application of mind. The court found it appropriate to modify the order passed by the learned single judge, only in respect of the direction issued to the appellants.

Held that:- The Hon’ble High Court modified the order impugned to the effect that the appellants are at liberty to issue SCN to the first respondent within a period of four weeks and on receipt of the same, the first respondent shall file their objections and documentary evidence, if any, within a period of two weeks thereafter.