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2024 (3) TMI 483 - HC - GSTIssuance of provisional attachment order - benefit of Input Tax Credit availed from invoices issued from non-existing firms - no further proceedings drawn by the respondents either by issuance of show cause notice or by any proceedings drawn under Section 73 or for that matter under Section 74 of the CGST Act - HELD THAT:- Except for the words “in order to protect the interest of revenue” there does not appear to be any reflection of the grounds/reasons/circumstances that compelled the Principal Commissioner to pass the order of provisional attachment. On looking at section 83, what is envisaged is upon initiation of any proceedings under Chapter XII, Chapter XIV or Chapter XV, the Commissioner has to make up an opinion that opinion is to be formed on the basis of the reasons which formed in the course of proceedings from the circumstances that prevailed in between etc., etc. If the opinions were not to be revealed and reflected in the order, the framers of law would have simply held that the Principal Commissioner had the power to issue orders of provisional attachment, protecting the interest of the government revenue. It has been emphatically held by Gujarat High Court in the case of M/S ANJANI IMPEX VERSUS STATE OF GUJARAT [2020 (10) TMI 760 - GUJARAT HIGH COURT] and Andhra Pradesh High Court also in the case of M/S ARHAAN FERROUS AND NON FERROUS SOLUTIONS PVT LTD VERSUS THE SENIOR INTELLIGENCE OFFICER [2022 (5) TMI 560 - ANDHRA PRADESH HIGH COURT] that once when Rule 159(5) provides for filing an objection, the person who intends to file an objection must know the reasons and grounds under which the order was passed, so that he can effectively file his objection and made the objections and grounds on the basis of which, the order of provisional attachment was passed. There are no doubt for the aforesaid reasons that the impugned order is un-sustainable and the same deserves to be and is accordingly set aside. Nonetheless, the right of the respondents stands reserved if they so want to pass a fresh order under Section 83 after framing of an opinion which may not be spell out in the order enabling the petitioner to avail the remedy available to him under Rule 159(5) of the CGST Rules. Petition allowed.
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