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2023 (5) TMI 423 - HC - GSTRemoval of provisional attachment of the bank accounts of the petitioner - return of the electronic devices seized - whether Section 83 contemplates a continued attachment of bank accounts for several years as has happened in the present case? - HELD THAT:- No doubt, the provisional attachment envisaged is for the protection of revenue and in light of the proceedings under Chapters XII, XIV and XV of the Act - The above chapters encompass all proceedings from inspection till assessment. However, the question that would arise is as to whether the proceedings may be kept pending endlessly such that attachments of bank accounts traverse three to four years seamlessly. It is the case of the respondents that the delay is on account of the non-response of the petitioner to show-cause notices. However, the respondents are well aware of the procedure set out under statute, and have to adhere to the same in a timely fashion, in accordance with law. In the present case, the show-cause notice has been issued only on 08.10.2022 in respect of an inspection that had transpired in January, 2019. The time lines as seen aforesaid would persuade me to arrive at a conclusion that the purpose of Section 83 which is stated to be ‘provisional attachment to protect revenue in certain cases‘ cannot be deployed so as to work against the assessee continuously for several years as has happened in the present case. The inspection in this case is January, 2019 whereas the show-cause notice is issued only in October, 2022. This delay of nearly four years in issuing show-cause notice cannot be a reason to continue an attachment under Section 83 of the Act, which itself is provisional in nature - Undeniably, Section 83 must be resorted to in appropriate cases, ensuring with equal vigour that the Department is proceeding in a timely manner, by issuing notice and finalizing proceedings in a time bound fashion. Petition allowed.
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