TaxTMI 
TaxTMI 
2021 (5) TMI 162
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....uminous transactions of several parties and he follows the law while conducting his business. He came to realize that the Central Bank of India on 20.08.2020 freezed his current account No.3785569992 with the Rajkot Main Branch. Without availing any opportunity, he straightway received the attachment order and realized that from the Office of the Principal Commissioner of Central GST, Mumbai, such order of freezing had happened and since then, he has not been allowed to operate the account. 3. The petitioner approached the respondent no.3 - the Bank through its Manager and requested to let him be provided the necessary details for the reason of defreezing his account. It is his serious grievance that despite his repeated requests, no information was disclosed by the authority concerned as to why the GST authority exercised such powers. He also approached the respondent no.2 at Mumbai with the similar request of defreezing the account as also to provide the reasons of such attachment for freezing of his account. He was orally conveyed that because of voluminous transactions with the third party, which is involved in violation of the provisions of the CGST Act, his account has been ....
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....ioner. According to the respondents, the case has been booked against Sajid Imam Shaikh (M/s. Belluxa Trading Company)(GSTIN ­27EXMPS00095G1ZZ) on the ground of procuring bogus invoices and claiming refund of accumulated ITC against those bogus invoices. Upon verification, M/s. Belluxa Trading Company was found to be non­existent. For safeguarding the government revenue, the matter was taken up with the Union Bank of India, where the refund amount of Rs. 3,15,52,578/­ (Rupees Three Crores Fifteen Lakhs Fifty Two Thousand Five Hundred Seventy Eight Only) was received by the company. 6. It is further the say of the respondents that on getting the trail of the money sanctioned as obtained from Union Bank of India, it was realized that sum of Rs. 48,25,000/­ (Rupees Forty Eight Lakh Twenty Five Thousand Only) out of the total refund claim sanctioned to M/s. Belluxa Trading Company, was transferred to M/s. Global Corporation on the very next day on 28.07.2020 to the Bank Account No.3785569992. Thereafter, Rajkot Branch of Central Bank of India was asked vide communication dated 19.08.2020 to withhold the amount till the investigation reaches to the completion stage. 7.....
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....or 74 of the Act are pending against him, whose properties are likely to be disposed of in the interest of the government. So far as third party is concerned, provision of Section 83 will not be available with the Court and even to provisionally attach the bank account being a drastic power, such powers are not to be exercised in routine. Even if for safeguarding the government revenue, provisional attachment of bank account is not permitted against the third party. Only upon the conditions provided under Section 83 being fulfilled, the powers are to be exercised. He has urged that there are inbuilt safeguards against the third party provided under Section 83 of the Act and therefore, there is a need for the Court to intervene in its writ jurisdiction. He further urged that in the decision of valerious Industries Versus Union of (Supra), the Court extensively has examined the scope of section 83 of the CGST Act, where it has not permitted the freezing of the bank account of the third party petitioner, holding it arbitrary under section 83 of the Act. 10. Learned Additional Solicitor General, Mr. Devang Vyas for the respondent nos.1 and 2 has fairly submitted that this Court dealt ....
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....hat for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed. 7. Indisputably, in the case on hand, no proceedings under Section 62 or Section 63 or Section 64 or Section 67 or Section 73 or Section 74 of the Act have been initiated or pending against the writ applicant. In the absence of pendency of any such proceedings referred to above, the respondent no.2 could not have invoked Section83 of the Act for the purpose of provisional attachment. Assuming for the moment that something has surfaced in the course of any inquiry or investigation against the writ applicant as regards some business transaction with any other individuals, the same by itself will not confer jurisdiction to the respondent no.2 to invoke the Section 83 of the Act. The language of Section 83 of the Act is plain and simple. In the absence of any proceedings pending as on date against the writ applicant under the provisions of the GST Act as referred to under Section83 of the Act, the order of provisional attachment cou....
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.... the petitioner, It has chosen not to divulge on the ground of pending investigation strangely. It is rightly pointed out before us that this action of freezing account is harsh and to be resorted as provided under the Statute. Thus, being a drastic power, the authority concerned cannot be oblivious of the serious consequences of provisional attachment of the bank account. Even if for the purpose of safeguarding the interest of the government revenue, the bank had chosen to follow the directions from the respondents, not to intimate to the petitioner as to why his account was freezed is wholly impermissible. In relation to the third party when such powers are impermissible to be exercised under section 83 of the Act, the bank ought to have applied its mind and more so when even under the RTI Act, the bank had been requested to furnish the details. Let a copy of this order be sent to the legal department of the bank for the future reference where it is not to be a party to something which the statute does not permit. 14. We notice at this stage that section 79 of CGST Act, 2017 which provides for the powers to the proper officer to recover the amount where the amount payable by a p....