Provisional attachment under GST requires prior recorded opinion; mechanical freezing of a bank account was set aside.

Provisional attachment of a bank account under Section 83 of the CGST Act is valid only if the competent authority first forms and records an opinion that attachment is necessary to protect revenue. Here, the attachment order merely recited that the account was frozen to safeguard revenue and did not show compliance with the mandatory precondition or any prior application of mind. The HC held the order to be mechanical and contrary to the statutory scheme, so the attachment was unsustainable in law and was set aside, with directions to de-freeze the account.

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Issues: Whether the provisional attachment of the petitioner's bank account under Section 83 of the Central Goods and Services Tax Act, 2017 was sustainable in the absence of formation of opinion by the competent authority before issuing the attachment order.

Analysis: Provisional attachment under Section 83 is a drastic power and can be exercised only upon strict observance of the statutory conditions. The competent authority must form an opinion that attachment is necessary to protect the interest of government revenue and must record that basis before directing attachment. The impugned order merely stated that the account was attached to protect revenue and did not disclose any prior formation of opinion or other material showing compliance with the mandatory preconditions. In such circumstances, the attachment was found to be mechanically issued and contrary to the statutory scheme governing provisional attachment.

Conclusion: The provisional attachment was held to be unsustainable in law and was set aside.

Final Conclusion: The bank account attachment was quashed and the bank was directed to de-freeze the petitioner's account, bringing the writ petition to a successful close for the petitioner.

Ratio Decidendi: A provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 is valid only if the competent authority first forms and records an opinion that such attachment is necessary to protect revenue; absence of that mandatory precondition renders the attachment unsustainable.

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