TMI Blog2020 (1) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, 73 and 74 of the Act and none other. The bank account of the taxable person can be attached against whom the proceedings under the sections mentioned above are initiated. Section 83 does not provide for an automatic extension to any other taxable person from an inquiry specifically launched against a taxable person under these provisions. Section 83 read with section 159(2), and the form GST DRC-22 show that a proceeding has to be initiated against a specific taxable person, an opinion has to be formed that to protect the interest of Revenue an order of provisional attachment is necessary. Power to provisionally attach bank accounts is a drastic power. Considering the consequences that ensue from provisional attachment of bank accounts, the Courts have repeatedly emphasized that this power is not to be routinely exercised. Under Section 83, the legislature has no doubt conferred power on the authorities to provisionally attach bank accounts to safeguard government revenue, but the same is within well-defined ambit. Only upon contingencies provided therein that the power under section 83 can be exercised. This power is to be used in only limited circumstances and it is not an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igence issued a summons to the Petitioner on 22 October 2019 to attend on 5 November 2019, referring to inquiry against M/s.Maps Global. The summons stated that the authorities had reason to believe that the Petitioner had facts and documents material for the inquiry. The Petitioner was summoned under section 70 of the CGST Act to give evidence and produce documents in the office of the Directorate General of GST Intelligence. On the same day, the Directorate General issued a communication to the State Bank of India informing the Bank Manager of proceedings being initiated against the Petitioner and a provisional attachment of bank account is necessary under section 83 of the CGST Act. Accordingly, the Bank Manager was directed that no debit be allowed to be made from the said account or any other account operated by the Petitioner. The Petitioner received a communication from the State Bank of India on 5 November 2019 regarding attachment by the Respondent- Authorities. Challenging this action of attachment under Section 83 of the Act, the Petitioner has moved the present Petition. 6. We have heard Ms.Anjali Jha Manish, learned Counsel appearing for the Petitioner and Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 9. Under the scheme of Act, levy and collection of tax are provided for in Chapter III, Assessment is under Chapter XII and Inspection, Search, Seizure and Arrest are dealt with under Chapter XIV. Chapter XV which deals with Demand and Recovery. This chapter provides for provisional attachment under section 83. Section 83, under which the power is exercised reads thus :- Provisional attachment to protect revenue in certain cases. - (1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that to protect the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed'. Therefore, during the pendency of any proceedings under section 62, 63, 64, 67, 73 and 74, the Commissioner can provisionally attach any property including bank account belonging to the taxable person. For this purpose the Commissioner has to form an opinion that it is necessary to do so for protectin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the aforesaid person on the same PAN without the prior permission of this department. or The property mentioned above shall not be allowed to be disposed of without the prior permission of this department. Signature Name Designation Copy to - The form of the order shows that it is to be addressed to the taxable person. The Sections under which the proceedings are launched against such a taxable person are to be referred and then a direction is to be issued for not allowing any debit. 10. Section 83 of the Act refers to the pendency of proceeding under Section 62, 63, 64, 67, 73 and 74. Section 63 deals with the assessment of unregistered persons. Section 64 is regarding a summary assessment in respect of certain special cases. Section 67 falls in Chapter XIV and refers to the power of inspection, search and seizure. Section 73 is in Chapter XV wherein it deals with the determination of tax not paid or short paid or erroneously refunded or wrongly availed, utilised for any reason other than fraud or any willful mis-statement made on suppression of facts. Section 70 confers power on the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated against the Petitioner under section 67 of the Act. On the date of provisional attachment of the bank account, only a summons under of the Act was issued to the Petitioner. Section 70 is not mentioned in Section 83 of the Act. No proceedings were pending against the Petitioner under section 62, 63, 64, 73 and 74 of the Act. Thus the Petitioner contends that power under section 83 could not have been invoked against the Petitioner. 13. Primary defence of the Respondents is that even if section 62, 63, 64, 67, 73 and 74 mentioned in section 83 of the Act are not referable to the case of the Petitioner, since a summons is issued to the Petitioner in pursuant to the inquiry initiated against M/s.Maps Global under section 67 of the Act, by the issuance of summons the proceedings get extended to the Petitioner also. 14. The analysis of section 83 of the Act will show that such interpretation is not permissible and not contemplated by the legislature. Section 83 read with Rule 159(1), and the form GST DRC-22, lay down a scheme as to how provisional attachment in certain cases is to be levied. Section 83 though uses the phrase pendency of any proceedings , the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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