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2021 (9) TMI 1111 - HC - GSTProvisional attachment of Bank Accounts - lack of application of mind - violation of principles of natural justice - mis-classification of goods - HELD THAT:- The order of the Commissioner records that pursuant to initiation of investigation under section 67 read with section 74 of the CGST Act, provisional attachment of the petitioner’s bank accounts has been made only with the intention to protect the large amount of revenue sought to be evaded by the petitioner on account of “willful misclassification of goods” - the evidence referred in the impugned order has not been annexed to the reply affidavit and, therefore, it is difficult to accept the version as recorded in such paragraph. Even otherwise, if at all it is a fact that the petitioner has not cooperated with the investigation, that by itself would not preclude the respondents from completing it with promptitude in accordance with law. However, this cannot constitute a valid reason for continuing the orders of provisional attachment. The Commissioner recorded a satisfaction that the present case was a fit case for invocation of section 83 of the CGST Act. It was found that as per the balance-sheet for the year 2019-20, the petitioner had declared the value of tangible assets or fixed assets as ₹ 8.53 Cr. approximately. Since the dues were far more than the value of the immoveable property, it was decided to continue attachment of the bank accounts. Mr. Raichandani has contended that the orders of provisional attachment ought to have been lifted bearing in mind the value of the assets and also in view of the law that pre-deposit of 10% is required if an appeal were preferred against the final order. We do not think that at this stage this issue ought to be considered, in view of the order proposed. The grounds on which the judicial review is available are well established. Non-consideration of relevant materials and consideration of extraneous matters together with non-access of the part affected to materials relied on in reaching conclusions, if substantiated, would provide sufficient ground for judicial review. In the present case, the provisional order dated May 21, 2021 is unsustainable - the Commissioner is directed to de novo consider the objection of the petitioner. In the event, the Commissioner refuses to lift the orders of provisional attachment once again, appropriate reasons shall be assigned. - petition allowed.
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