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TMI Blog2020 (9) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... rams in India of the University of Fraser Valley, Canada (hereinafter referred to as "the UFV, Canada). The academic programs are being carried out in collaboration with Goswami Ganesh Dutta Sanatan Dharma College and Panjab University. The degrees awarded by the UFV, Canada are recognized by the Panjab University. It is averred that on 27.07.2020, the officials of the Directorate General of Goods and Services Tax Intelligence, Chandigarh Zonal Unit (hereinafter referred to as "DGGSTI") visited the premises of the petitioner and recorded the statements of its Associate Director(s). A panchnama was prepared on the said date which shows that the authorized persons of the petitioner cooperated with DGGSTI and provided access to all the required documents. On 30.07.2020, the Officer of the DGGSTI sent an e-mail to the petitioner that its bank account has been provisionally attached under Section 83 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "the Act"). The objection was filed on 30.07.2020 under Rule 159 (5) of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "the Rules") against the provisional attachment of the bank account a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure. (1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that-- (a) a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or (b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the goods, the goods shall be returned to the person from whose possession they were seized: Provided that the period of six months may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months. (8) The Government may, having regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (2), be disposed of by the proper officer in such manner as may be prescribed. (9) Where any goods, being goods specified under sub-section (8), have been seized by a proper officer, or any officer authorised by him under subsection (2), he shall prepare an inventory of such goods in such manner as may be prescribed. (10) The provisions of the Code of Criminal Procedure, 1973, relating to search and seizure, shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of section 165 of the said Code shall have eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en wrongly availed or utilised by reason of fraud, or any willful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax. (4) The service of statement under sub-section (3) shall be deemed to be service of notice under sub-section (1) of section 73, subject to the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion "all proceedings in respect of the said notice" shall not include proceedings under section 132; (ii) where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under sections 122, 125, 129 and 130 are deemed to be concluded. Explanation 2.-- For the purposes of this Act, the expression "suppression" shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer." Counsel for the petitioner has relied upon a decision of the Gujarat High Court in the case of Kushal Ltd. Vs. Union of India; 2019-VIL-619-GUJ. The relevant paragraphs of the said judgment are reproduced as under:- "14. On a plain reading of section 83 of the GST Acts, it is clear that a sine qua non for exercise of powers thereunder is that proceedings should be pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to provisionally attach the property or the bank account of the taxable person but it is not provided anywhere that the property or the bank account can remain attached under the order passed under Section 83 of the Act if the proceedings initiated under Section 67 is culminated into the proceedings under Section 63 or Section 74 i.e. Assessment of unregistered persons and Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful misstatement or suppression of facts. In our considered opinion, the effect of Section 83 of the Act shall come to an end as soon as the proceedings pending in any of the aforesaid Sections i.e. 63 or 64 or 67 or 73 or 74 are over because pendency of the proceedings is the sine qua non and in case the Commissioner still feel or is of the opinion that it is necessary so to do in the interest of protecting the Government revenue, it still can pass an order in writing to attach any property or even the bank account of the taxable person if the proceedings are initiated in any of the aforesaid provisions and are pending but for the provisions in which the proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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