Provisional attachment under GST requires recorded reasons in the order; file notes and later affidavits cannot cure the defect.

Provisional attachment under GST is an exceptional power that can be exercised only on tangible material and with a recorded formation of opinion showing why revenue protection is necessary. The communicated Form GST DRC-22 order itself must disclose the reasons, so the assessee can understand the action and, where the scheme permits, object effectively; reasons noted only in the file are insufficient. A later counter affidavit or assessment order does not cure a defective attachment order, because legality is judged on the order as passed. The omission to record reasons showed non-compliance with the mandatory requirement, so the attachment was unsustainable and set aside.

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Issues: Whether the provisional attachment orders issued under Form GST DRC-22 were valid when they did not record reasons or disclose the formation of opinion required for exercise of power under the GST law.

Analysis: The power of provisional attachment is an exceptional measure and must be founded on tangible material showing necessity to protect revenue. The order itself must disclose the basis of satisfaction so that the assessee can understand the action and, where permitted, effectively object to it under the statutory scheme. Recording reasons only in the note file is insufficient when the communicated attachment order contains no reasons. The later counter affidavit and the subsequent assessment order did not cure the defect in the attachment order, because the legality of provisional attachment had to be tested on the order as passed. The absence of recorded reasons showed non-compliance with the mandatory requirement of formation of opinion.

Conclusion: The provisional attachment was unsustainable and was rightly set aside in favour of the assessee.

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