VIOALTION OF ATTACHMENT OF ORDER UNDER SECTION 83 BY BANK

[Sadanand Bulbule]

Dear Sirs

Herr is a serious query.

1.The Proper Officer has passed an order of attachment of Bank Account under Section 83 of the GST Acts in respect of a dealer pending investigation of fraudulent tax evasion.The attachment order has been duly served on the Bank Manager. Over a period of time the Proper Officer confirms that, the dealer under attachment has transacted crores of rupees and was allowed to withdraw entire money periodically in cash despite statutory order under Section 83 of the GST Act.

2. On initial enquiry, the Bank authorities are unable to provide any reason or justification or explanation about such withdrawal of money. Facts being so, what are the statutory responsibilities of Bank in such scenario and how the Bank can be held accountable for failure to obey the statutory order passed under the GST Act.

3. Had the Bank obeyed the statutory attachment order honestly, the revenue due ot the Government would have been realised safely on real time basis. By disobeying the attachment order, the Bank has caused loss of revenue due to the Government.

4. Whether FIR can be filed against the particular Bank branch for deliberately discarding the statutory order and misconduct causing loss of huge revenue and abating the fraudulent tax evaders to run away with crores of money. Whether there could be any malafide intention in allowing to withdraw money despite statutory attachment?

5. What are the legal remedies available for the department to recover the tax amount for which attachment order was ordered but it was successfully failed.

6. If such practice continues, the intent and object of the Section 83 would be murdered by the Banks, which is something very serious. Already the depositors have been losing faith in many Banks and recent scams are the proof for that.

Kindly enlighten on this serious issue.

AI Summary

Bank liability for disregarding statutory attachment may expose the bank to tax liability and departmental recovery measures.
A statutory attachment under Section 83 restrains use of a taxpayer's funds during proceedings; if a bank served with that order permits withdrawals without justification, the bank may face liability where a separate statutory notice creates pay-and-recover obligations, and the department may employ recovery measures and penal provisions for abetment or misconduct.