Judicial Intervention Invalidates GST Attachment Proceedings, Mandates Proper Notice and Protects Electronic Credit Ledger Rights

HC found attachment proceedings under Section 83 of Central GST Act, 2017 invalid due to lack of notice under Section 74. Court revoked account attachment, emphasizing attachment should be last resort. Ruling allows Electronic Credit Ledger release while preserving respondents' right to future legal proceedings against petitioner.

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Issues involved:
The legality of attachment proceedings under Section 83 of the Central GST Act, 2017 without serving notice under Section 74.

The judgment addresses the issue of the legality of attachment proceedings initiated under Section 83 of the Central GST Act, 2017 without serving notice under Section 74. The petitioner argued that the attachment of the account was unjustified as they were not served with any notice under Section 74. The court noted that the search and seizure action was taken against the petitioner, and provisional attachment was ordered. However, no further proceedings were undertaken by the respondents after the initial orders were passed. The court emphasized that attachment proceedings have serious repercussions on an individual's business and should only be taken as a last resort. It was observed that no notice under Section 74 was issued to the petitioner, and as such, it was deemed inappropriate to continue the attachment of the account. Therefore, the court allowed the writ petition and revoked the attachment order, releasing the Electronic Credit Ledger. The court clarified that the order does not absolve the petitioner from any future proceedings that the respondents may undertake under the Act of 2017.

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