Provisional attachment under GST set aside for denial of hearing, with fresh reasoned decision ordered after personal hearing.

Provisional attachment of bank accounts and flats under the CGST Act was quashed for want of prior hearing, as the petitioner had filed objections and sought a personal hearing before the adjudicating authority. The High Court held that the impugned attachment orders could not stand where no hearing had been afforded, and directed the authority to give the petitioner a personal hearing and then pass a reasoned order on merits in accordance with law. The issue relating to summons and the ongoing investigation was left open for the authorities to deal with as permitted by law.

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Issues: Whether the provisional attachment orders passed under the Central Goods and Services Tax Act, 2017 were liable to be quashed for want of hearing, and whether the petitioner was entitled to a personal hearing before the adjudicating authority.

Analysis: The petition challenged provisional attachment of bank accounts and flats under Section 83 of the Central Goods and Services Tax Act, 2017 read with Rule 159(1) of the Central Goods and Services Tax Rules, 2017. The petitioner had filed objections and was ready to appear before the adjudicating authority, while the respondents did not oppose grant of hearing. The Court noted that the petitioner had not been heard before the impugned orders were passed. The issue relating to summons and the ongoing investigation was expressly left open for the authorities to act in accordance with law.

Conclusion: The provisional attachment orders were quashed and set aside, and the petitioner was directed to be given a personal hearing before the adjudicating authority, which was then required to pass a reasoned order on merits in accordance with law.

Ratio Decidendi: A provisional attachment order passed without affording hearing, where hearing is subsequently conceded and sought, can be set aside and the matter remitted for a fresh reasoned decision after personal hearing.

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