AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1455
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Issue a writ, order or direction in the nature of certiorari quashing the impugned orders of provisional attachment in Form DRC-22 dated 23.07.2025 (Annexure-1 & 2) passed by respondent no. 2, provisionally attaching bank account No.120033996329 maintained with Canara Bank, Kotdwar Branch and bank account bearing No.25430200000000263 maintained with Indian Overseas Bank, Kotdwar Branch; B- Issue a writ, order or direction in the nature of certiorari quashing the impugned order dated 28.07.2025 (Annexure-3) of respondent no. 3 blocking the electronic credit ledger of the petitioner to the tune of Rs. 1,95,57,339/-; C- Issue a writ, order or direction in the nature of mandamus commanding the respondents to forthwith allow operations of both bank accounts of the petitioner forthwith unblock the credit ledger of the petitioner; ..." 4. Mr. Nishant Mishra, learned counsel appearing on behalf of the petitioner submits that the reasons provided in the attachment notice are absolutely false and contrary to the facts. He submits that the reason for attachment has been stated to be that proceedings have been launched against the aforesaid taxable person under S....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., one may have a brief look at the exposition of law on the subject matter at hand. The Supreme Court in Radha Krishan Industries v. State of H.P. reported in (2021) 6 SCC 771 has categorically held that opinion for provisional attachment must be based on existence of some tangible material and should not be based on mere discretion of authorities. Furthermore, the Court has crystallised its findings and concluded in relation to formation of opinion for provisional attachment under Section 83 of the Act The relevant paragraphs of the judgment are quoted hereinbelow: "49. Now in this backdrop, it becomes necessary to emphasise that before the Commissioner can levy a provisional attachment, there must be a formation of "the opinion" and that it is necessary "so to do" for the purpose of protecting the interest of the government revenue. The power to levy a provisional attachment is draconian in nature. By the exercise of the power, a property belonging to the taxable person may be attached, including a bank account. The attachment is provisional and the statute has contemplated an attachment during the pendency of the proceedings under the stipulated statutory provisions not....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Section 83 is contemplated during the pendency of certain proceedings, meaning thereby that a final demand or liability is yet to be crystallised. An anticipatory attachment of this nature must strictly conform to the requirements, both substantive and procedural, embodied in the statute and the rules. The exercise of unguided discretion cannot be permissible because it will leave citizens and their legitimate business activities to the peril of arbitrary power. Each of these ingredients must be strictly applied before a provisional attachment on the property of an assessee can be levied. The Commissioner must be alive to the fact that such provisions are not intended to authorise Commissioners to make pre-emptive strikes on the property of the assessee, merely because property is available for being attached. There must be a valid formation of the opinion that a provisional attachment is necessary for the purpose of protecting the interest of the government revenue. *** 52. We adopt the test of the existence of "tangible material". In this context, reference may be made to the decision of this Court in CIT v. Kelvinator of India Ltd. [CIT v. Kelvinator of India Ltd., ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....venue." (Emphasis added) 9. This court in R.D. Enterprises v. Union of India reported in 2024:AHC:149247-DB penned by one of us has held that this provision being draconian in nature necessitates the formation of an opinion based on cogent reasons before exercising power for provisional attachment. The relevant paragraphs of the judgment are quoted hereinbelow: "7. One may look into the judgment passed by the Calcutta High Court in the case of Amazonite Steels Pvt. Ltd. vs. Union of India reported in 2020 (36) G.S.T.L. 184 (Cal.), wherein the Court has held as follows:- "Epilogue: "A tax collector should collect taxes from a taxpayer just like a bee collects honey from a flower in an expert manner without disturbing its petals" - Kautilya in Arthashastra. 38. The new regime under the GST Act, 2017 is a new legislative creation by which the Union Government along with all the State Governments have streamlined various statutes under which tax was earlier collected to enhance the ease of doing business by preventing multi-point taxation that was extremely cumbersome and time consuming for the citizens of India. The raison d'etre of the GST Ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... said person. As per information available with the department, it has come to my notice that the said person has bank A/C No.120033996329. In order to protect the interests of revenue and in exercise of powers conferred under section 83 of the Act, I, Jitendra Kumar, Commissioner of CGST, Noida hereby provisionally attach the aforesaid account/property and all other bank accounts associated with PAN No ABICS3958D. No debit shall be allowed to be made from the said account or any other account operated by the aforesaid person on the same PAN without the prior permission of this department. Further, the KYC documents and statement of abovesaid Bank Account No. since inception may also be provided for necessary action at this end. Digitally signed by Jitendra Kumar 23.07.2025 (Jitendra Kumar) Commissioner." 11. Upon a perusal of the said letter, the only reason that emanates is that the present provisional attachments are required to be made as proceedings have been launched against the aforesaid taxable person under Section 74 of the Act. There is not a whisper of any specific requirement or ground a....