Court quashes property attachment order, emphasizes need for credible material & rational connection.

The court partly allowed the writ application by quashing the provisional attachment order of immovable property under Section 83 of the Act but did not provide relief regarding Form GST DRC-01A. The court emphasized the necessity of credible material for provisional attachment and highlighted the requirement for a rational connection in forming opinions. The Department was permitted to take appropriate action afresh in compliance with the court's legal interpretation.

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Issues Involved:
1. Quashing of Form DRC-01A dated 23.07.2020.
2. Quashing of the provisional attachment order in Form GST DRC-22 dated 24.07.2020.
3. Transfer of proceedings to the CGST department.
4. Interim reliefs including lifting the attachment of factory premises, staying the operation of Form GST DRC-01A, and preventing coercive action against the petitioner.

Analysis of Judgment:

1. Quashing of Form DRC-01A dated 23.07.2020:
The court was not inclined to interfere with the order passed in Form GST DRC-01A dated 23rd July 2020. The court did not provide relief concerning this order, implying that the issuance of Form GST DRC-01A was found to be in accordance with the law.

2. Quashing of the Provisional Attachment Order in Form GST DRC-22 dated 24.07.2020:
The court found that the provisional attachment of the immovable property in the form of residential premises under Section 83 of the Act was not sustainable in law. The court emphasized that Section 83 requires the formation of an opinion based on credible material to protect the interest of government revenue. The order of provisional attachment was deemed a mechanical exercise of power without the necessary material to justify it. The court highlighted that the formation of the opinion must be based on credible material and not on imaginary grounds or wishful thinking. The court also referenced several Supreme Court judgments to support its conclusion that the subjective satisfaction for provisional attachment must be based on rational connection and credible material.

3. Transfer of Proceedings to the CGST Department:
The judgment does not provide specific details about the court's decision on the request to transfer the proceedings to the CGST department. The primary focus of the judgment was on the provisional attachment and the validity of Form GST DRC-01A.

4. Interim Reliefs:
The court did not explicitly address the interim reliefs requested by the petitioner, such as lifting the attachment of factory premises, staying the operation of Form GST DRC-01A, and preventing coercive action. However, by quashing the provisional attachment order, the court implicitly provided relief concerning the attachment of immovable property.

Conclusion:
The writ application was partly allowed. The court quashed the provisional attachment order of immovable property under Section 83 of the Act but did not grant relief concerning Form GST DRC-01A. The court clarified that this order would not prevent the Department from taking appropriate action afresh, strictly in accordance with the law as explained by the court.

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