Court quashes property attachment but upholds tax order; stresses need for credible evidence.

The court partly allowed the writ application, quashing the provisional attachment orders of immovable properties under Section 83 of the Act but not granting relief regarding the order in Form GST DRC-01A. The court emphasized the need for credible material to justify such actions and set aside the provisional attachment order lacking reasoning. The court clarified that its decision does not prevent the Department from taking appropriate action in accordance with the law.

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Issues Involved:
1. Quashing of Form DRC-01A dated 23.07.2020.
2. Quashing of provisional attachment order in Form GST DRC-22 dated 24.07.2020.
3. Transfer of proceedings to the CGST department.
4. Interim reliefs pending final disposal of the petition.

Issue-wise Detailed Analysis:

1. Quashing of Form DRC-01A dated 23.07.2020:
The court did not interfere with the order passed in Form GST DRC-01A dated 23rd July 2020. The writ applicant's request to quash this form was not granted. The court found no substantial grounds to invalidate this order, thereby allowing it to stand.

2. Quashing of provisional attachment order in Form GST DRC-22 dated 24.07.2020:
The court found the provisional attachment of the immovable properties, including the industrial unit and residential premises under Section 83 of the Act, to be unsustainable in law. The court emphasized that the order was a result of a mechanical exercise of power without the necessary material to justify such action. The court highlighted that Section 83 requires the formation of an opinion based on credible material to protect the interest of government revenue. The court stated that the formation of opinion must be based on some credible material and not on imaginary grounds or wishful thinking. The court concluded that the impugned order lacked any reason and was bereft of the necessary material, thus quashing and setting aside the provisional attachment order.

3. Transfer of proceedings to the CGST department:
The court did not explicitly address the issue of transferring the proceedings to the CGST department in the judgment. The primary focus was on the validity of the provisional attachment orders and the Form DRC-01A.

4. Interim reliefs pending final disposal of the petition:
The court did not grant the interim reliefs requested by the writ applicant, which included lifting the attachment of factory premises, staying the operation of Form GST DRC-01A, and preventing any coercive action against the petitioner. The court's primary decision was to quash the provisional attachment orders, thereby addressing the core grievance of the writ applicant.

Conclusion:
The writ application was partly allowed. The court quashed and set aside the provisional attachment orders of the immovable properties under Section 83 of the Act. However, the relief regarding the order in Form GST DRC-01A was not granted. The court clarified that its order would not prevent the Department from taking appropriate action afresh in accordance with the law. The connected civil application for stay was also disposed of accordingly.

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