TaxTMI 
TaxTMI 
2025 (6) TMI 340
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....cle 226 of the Constitution of India inter alia challenging the following: (i) The letter of attachment of bank account (hereinafter 'attachment letter) under Section 83 of the Central Goods and Services Act, 2017 (hereinafter 'CGST Act') dated 28th May, 2024. (ii) The Show Cause Notice dated 20th June, 2024 (hereinafter 'SCN') . 3. The challenge to SCN is levelled inter alia on the ground that prior intimation under Form DRC-01A was not provided within the stipulated time period prescribed in terms of CGST Act and the same was issued only one day prior to the issuance of the SCN. 4. Insofar as the challenge to the attachment letter is concerned, the same is challenged on the ground that the letter has been issued - ....
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...., by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1)." 9. A plain reading of Section 83(1) of the CGST Act indicates that an order of provisional attachment can be passed where proceedings have commenced under Chapter XII, Chapter XIV or Chapter XV of the CGST Act. Chapter XIV of the CGST Act includes Section 67 to Section 72 of the CGST Act. It is apparent that the summons has been issued under Section 70 of ....
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.... 76.5. The exercise of the power for ordering a provisional attachment must be preceded by the formation of an opinion by the Commissioner that it is necessary so to do for the purpose of protecting the interest of the government revenue. Before ordering a provisional attachment the Commissioner must form an opinion on the basis of tangible material that the assessee is likely to defeat the demand, if any, and that therefore, it is necessary so to do for the purpose of protecting the interest of the government revenue. 76.6. The expression "necessary so to do for protecting the government revenue" implicates that the interests of the government revenue cannot be protected without ordering a provisional attachment. 76.....
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.... Section 107 will come into operation in regard to the payment of the tax and stay on the recovery of the balance as stipulated in those provisions, pending the disposal of the appeal." 12. There is no requirement that the material on the basis of which the Commissioner has formed an opinion must be included in an order passed under Section 83(1) of the CGST Act. Thus, the contention that the impugned order is vitiated as it does not include all such material is unmerited." 6. The Court also considered the fact that there were certain suspicious and fraudulent payments which were made which led to the freezing of the bank account and finally limited notice was issued with the following observations: "14. In the present ....
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....w Cause Notice and had replied to the same. However, the same was not considered. 17. Issue notice limited to the said extent." 7. This order was assailed by the Petitioner before the Supreme Court in S.L.P 28903/2024. Vide order dated 3rd March, 2025, the same has been disposed of in the following terms: "1. The subject matter of challenge before the High Court was an order of provisional attachment of bank account of the petitioner passed by the Commissioner under Section 83 of the Central Goods and Services Tax Act, 2017 (for short "the CGST Act"). The challenge before the High Court failed. In such circumstances, the petitioner is here before this Court with the present petition. 2. Today, when the matter w....