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TMI Blog2022 (6) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... in W.P.A. No.13009 of 2021. The appellants / writ petitioners had challenged the order of provisional attachment passed by the respondent authorities dated 20th January, 2021 in exercise of their power under Section 83 Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act"). The appellants had filed the writ petition after nearly seven months from the date of which the order of provisional attachment was passed but their case was that they sought for lifting the order of attachment but the authorities did not consider the same. Therefore, they had approached the learned Writ Court. The appellants have prayed for appropriate interim orders to protect their business activities. The learned Single Bench was not inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount mentioned in the said communication. Thereafter, summons under Section 70 have been issued to the Director of the appellant no.1 and the matter has been proceeding and in the meantime, the appellants have deposited a sum of Rs.10 lakh vide deposit payment receipt dated 1st February, 2021. The appellants submitted a representation dated 2nd February, 2021 stating that without going into the merits of admissibility or inadmissibility of the alleged ITC, they contended that on account of attachment of the bank account, they are unable to run their business and they are passing through acute financial crunch owing to the Covid-19 pandemic and in the said letter, they agreed to pay a sum of Rs.10 lakhs and specifically mentioned that if a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roximately as per the proceedings initiated under Section 67 of the CGST Act. Further, the respondent quoted the guidelines issued by the GST Policy Wing for provisional attachment of property. This communication was put to challenge by the appellants. The undisputed fact is that the proceedings under Section 67 of the CGST Act has been concluded and according to the learned senior standing counsel for the respondent nos.1 to 4, the matter is being processed and ultimately will result in issuance of the show cause notice for which statute provides for sufficient time of four years to the department. Therefore, it is submitted that once the order has been passed under Section 83 provisionally attaching the bank account of the appellants, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n tangible material, which indicates a live link to the necessity to order a provisional attachment to protect the interest of the government revenue. Further, it was pointed out that a provisional attachment under Section 83 is contemplated during the pendency of certain proceedings, meaning thereby that a final demand or liability is yet to be crystalized. An anticipatory attachment of this nature must strictly conform to the requirements, both substantive and procedural, embodied in the statute and the rules. The exercise of unguided discretion is not permissible because it will leave citizens and their legitimate business activities to the peril of arbitrary power. It was further pointed out that under Section 83, the order of provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Vs. Union of India reported in [2020] 122 taxmann.com 143 (Punjab & Haryana). The Hon'ble Punjab & Haryana High Court repelled the said contention and held that property of bank account of taxable person cannot remain attached under order passed under Section 83 if proceedings initiated under Section 67 is over or culminated into proceedings under Sections 63 or Section 74 of CGST Act. In the instant case, the proceedings under Section 67 have been admittedly concluded and according to the department, they are entitled to issue show cause notice within a period of four years and therefore, the order of attachment should be allowed to continue till then, is an interpretation which cannot be accepted bearing in mind the legal principle as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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