TaxTMI 
TaxTMI 
2025 (6) TMI 340
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....lia 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 - (i) at a time when no proceeding was initiated against the P....
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....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 the CGST Act - which falls under Chapter XIV of the CGST Act prior to passing the impugned order. 10. There is no cavil ....
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....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. 76.7. The formation of an opinion by the Commissioner under Section 83(1) must be based on tangible material bearing on the necessity of ordering a provisional attachment for the purpose of prote....
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....f 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 case, the impugned order records that the investigation has revealed that the petitioner had made suspicious and fraudulent payments to certain bank accounts and wrongfully availed and passed Input Tax Credit (hereafter ITC) to the extent of Rs. 87,54,083/-. The S....
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....osed 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 was taken up for hearing, the learned counsel appearing for the petitioner pointed out that during the interregnum period a final order under Section 74 of the CGST Act has been passed and the petitioner is in the process of challenging the said final order in accordance with law. In such circumstance....