Provisional attachment powers expanded, raising risks of misuse and business disruption absent strict evidentiary safeguards.
Provisional attachment under GST allows the Commissioner to attach property, including bank accounts, during specified pending proceedings to protect revenue, but only when the Commissioner, acting on tangible material, forms an opinion that such attachment is necessary and proportionate. Courts treat this power as drastic and exceptional, require strict compliance with statutory ingredients, disallow mechanical or delegated use, and mandate that liquid assets be attached only as a last resort. A recent amendment broadens scope to other persons and additional proceedings, prompting concerns about misuse absent clear statutory benchmarks and administrative guidance. (AI Summary)