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TMI Blog2020 (12) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... t in favour of the petitioners. 3. Learned counsel for the petitioners submits that as only show cause notice under Section 70 of the Central Goods and Services Tax Act, 2017 has been issued, the attachment under Section 83 of CGST Act can not be made. Consequently, the impugned orders of provisional attachment are bad and it is liable to be quashed. 4. We have carefully considered the submissions of the learned counsel for the parties. 5. From the record, we find that order dated 22.07.2020 was issued by the proper officer to the petitioners, informing GST DRC-01A under Section 74(5) of the Act, requiring the petitioners to deposit the ascertained amount of Rs. 69,67,729/- + interest @ 24%+ penalty @ 15% or to submit objection under Section 74(1) of the Act. An opportunity was also given by fresh notice so that petitioners may file an objection against the above ascertainment by 14.08.2020 in Part B of this Form. 6. Learned counsel for the petitioners has stated that petitioners have not submitted any objection against the ascertainment dated 22.07.2020 issued by the proper officer, which was followed by the impugned provisional attachment order dated 22.07.2020 issued by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) of Section 74, as the case may be, shall communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A. (2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act, whether on his own ascertainment or, as communicated by the proper officer under subrule (1A), he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04. (2A) Where the person referred to in sub-rule(1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A. Rule 159 (5) Any person whose property is attached may, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... running unit and more than 100 families are dependent upon Petitioner. Till date no proceedings under Section 74 of CGST Act are pending which would start as soon as show cause notice is issued. The Respondent has seized record of the Petitioner who has further supplied various documents as well put personal appearance through Directors and employees. The object and intention of legislature to endow Commissioner with power of attachment under Section 83 is very clear. It is drastic and far-reaching power which must be used sparingly and only on substantive weighty grounds and reasons. The power should be exercised only to protect interest of revenue and not to ruin business of any taxable person. Primarily Section 83 permits to attach property. Property means an asset which may be movable, immovable, tangible, intangible or in the form of some instrument. Cash in hand as well bank account is property, in the form of liquidity which is better than immovable property and directly affects working in the form of working capital of a dealer. A dealer may be having 15 of 17 CWP No.31382 of 2019(O&M) #16# cash in hand or in account in the form of fixed deposit or saving account. The m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment dated 17.01.2020 of Bombay High Court in Writ Petition No. 3145 of 2019 (Kaish Impex Private Limited through its Director Vs. The Union of India, through the Secretary, Department of Legal Affairs, Ministry of Law & Judge and others) relied by the learned counsel for the petitioners, also does not support the case of the petitioners. Relevant para 12 of the aforesaid judgment is reproduced below:- "Para 12. The judgment order dated 22 October, 2019 proceeds on the assertion that proceedings have been launched against the petitioner under Section 67 and 70 of the Act. As far as section 67, i.e. search is concerned, it is an uncontroverted position that no proceedings have been initiated against the petitioner under section 67 of the Act. On the date of provisional attachment of the bank account, only a summon 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". 15. Perusal of the aforesaid judgment in the case of Kai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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