Provisional Tax Attachment Quashed: CGST Act Challenged Successfully, Property and Bank Accounts Freed

HC allowed the writ petition challenging provisional attachment orders under CGST Act. Based on Supreme Court precedent in Radha Krishan Industries, the court found no justification to continue the attachment and quashed the orders, releasing the petitioner's bank accounts and properties without imposing costs.

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Issues involved:
The judgment involves the provisional attachment orders dated 15.07.2022 passed by respondent No. 1 u/s 83 of the Central Goods and Services Tax Act, 2017, challenged through a petition filed u/s Article 226 of the Constitution of India.

Provisional Attachment Orders:
The provisional attachment orders dated 15.07.2022 provisionally attached the petitioner's bank accounts and properties, including specific details of the attached assets like bank account numbers and immovable properties with their respective values.

Legal Proceedings:
After the issuance of notice on 13.09.2022, respondents No. 1 and 2 filed a counter affidavit justifying the provisional attachment. In response, the petitioner filed a rejoinder affidavit and submitted the order-in-original dated 15.12.2022 passed by respondent No. 2, against which the petitioner has filed an appeal currently pending.

Applicability of Legal Precedent:
The petitioner argued that the situation in the present case aligns with the decision of the Supreme Court in Radha Krishan Industries v. State of Himachal Pradesh 2021, emphasizing the importance of compliance with the provisions of the law.

Court's Decision:
After considering the submissions and the legal provisions, the Court noted that the final order-in-original was passed under Section 74 of the CGST Act, similar to the legal context in the Radha Krishan Industries case. Consequently, the Court found no justification to continue with the impugned provisional attachment orders and set them aside, quashing the attachments.

Final Ruling:
The High Court allowed the writ petition, setting aside the provisional attachment orders dated 15.07.2022 passed by respondent No. 1. The miscellaneous applications pending were closed with no order as to costs.

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