Court sets aside attachment order under GST Act due to lack of pending proceedings.

The court set aside the provisional attachment order under section 83 of the Central Goods and Services Tax Act, 2017, as no pending proceedings existed against the petitioner under the relevant sections. Relying on a Division Bench decision, the court found that the order lacked jurisdictional basis. The court distinguished a cited decision by the respondents and aligned with the petitioner's argument, supported by a Supreme Court decision in M/s. S.S. Offshore Pvt. Ltd. The court directed the immediate defreezing of the petitioner's bank account, allowing the writ petition without costs and emphasizing adherence to legal boundaries by the respondents.

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Issues:
Challenge to provisional attachment order under section 83 of the Central Goods and Services Tax Act, 2017 due to non-existence of pending proceedings under relevant sections.

Analysis:
The writ petition challenges an order dated 09/11/2020 by the Assistant Commissioner for provisional attachment of property under section 83 of the CGST Act, contending that no proceedings are pending against the petitioner under specific sections, rendering the jurisdictional fact for the order non-existent. The petitioner relies on a Division Bench decision to support their argument, where a similar provisional attachment order was set aside. On the other hand, the respondents argue that the petitioner should seek relief under Rule 159(5) to revoke the attachment order, citing a different decision by the same Division Bench.

Upon hearing both parties and examining the cited decisions, it is noted that no proceedings under the relevant sections have been initiated against the petitioner. The court distinguishes the present case from the decision cited by the respondents, as the issue of the provisional attachment order being made without pending proceedings was not raised in that case. The court agrees with the petitioner's argument, finding alignment with the decision in M/s. S.S. Offshore Pvt. Ltd., supported by a Supreme Court decision. The court concludes that the provisional attachment order is contrary to the Supreme Court decision and sets it aside, directing the defreezing of the petitioner's bank account immediately. The writ petition is allowed with no costs, while leaving room for the respondents to act within the boundaries of the law.

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