Provisional attachment under GST requires credible material and real revenue necessity; vague investigation grounds are insufficient.

Provisional attachment under the GST framework is a drastic measure that requires a Commissioner's satisfaction based on credible material showing a real necessity to protect revenue. Mere pendency of search or investigation, or allegations going to the merits of the tax dispute, is insufficient; the material must have a rational connection to the need for attachment and cannot rest on vague or remote grounds. An order of provisional attachment and the consequential prohibition issued without such legally sustainable basis, and by the Assistant Commissioner, was held unsustainable and quashed in favour of the assessee.

---

---

Issues: Whether the provisional attachment of the immovable property and bank accounts, and the consequential order of prohibition, were sustainable in law.

Analysis: The power of provisional attachment under the GST framework is a drastic and far-reaching measure. Its exercise depends on the Commissioner's opinion being formed on the basis of credible material and a real necessity to protect revenue. Mere pendency of search or investigation, or allegations going to the merits of the tax dispute, is not enough. The material relied upon must have a rational connection with the formation of the belief that attachment is necessary, and the power cannot be exercised on vague, indefinite, or remote grounds. The order was also found vulnerable because it was passed by the Assistant Commissioner, and not on a legally sustainable basis of credible material supporting the required satisfaction.

Conclusion: The provisional attachment orders and the order of prohibition were unsustainable and were quashed; the relief was in favour of the assessee.

---