Provisional GST attachment cannot continue mechanically when cooperation and security protect revenue interests.

Provisional attachment of bank accounts under GST section 83 was held unwarranted where the taxpayer showed cooperation, the relevant invoices and documents were already with the department, and adequate security was offered. The Court found that continued restraint on the accounts was not justified at that stage and allowed the accounts to be operated, while preserving the revenue's right to continue investigation, issue a show cause notice within a reasonable time, and adjust any fixed deposit against eventual liability after final adjudication. The ruling underscores that provisional attachment should not continue mechanically when less restrictive measures can protect the revenue.

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Issues: Whether the provisional attachment of the petitioner's bank accounts under section 83 of the GST law was sustainable and whether limited relief to operate the accounts could be granted pending further proceedings.

Analysis: The attachment had been ordered during search and seizure proceedings on the premise of non-cooperation and possible revenue loss. The petitioner demonstrated cooperation, stated that the relevant invoices and documents were already with the department, and offered a fixed deposit as a mitigating safeguard. In these circumstances, the Court found that continued restraint on the bank accounts was not warranted at that stage, while preserving the respondent's right to continue investigation and to issue a show cause notice within a reasonable time. The Court also protected the revenue by permitting any fixed deposit to be adjusted against any eventual liability after final adjudication.

Conclusion: The provisional attachment was set aside to the extent it prevented operation of the bank accounts, and the petitioner was granted relief, while the revenue's right to pursue the proceedings and secure any future liability was preserved.

Final Conclusion: The petition succeeded in part by lifting the restraint on the bank accounts, but the underlying GST investigation and future adjudication of liability were left open.

Ratio Decidendi: Provisional attachment under section 83 is not to be continued mechanically once the taxpayer shows cooperation and furnishes adequate security, if the revenue interest can be protected by less restrictive measures.

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