TMI Blog2022 (6) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... one week from the date of receipt of the server copy of this order to lift the attachment of the said bank account - Application allowed. - M.A.T 1233 of 2021 With I.A. CAN 1 of 2021 - - - Dated:- 17-12-2021 - HON BLE JUSTICE T. S. SIVAGNANAM AND HON BLE JUSTICE HIRANMAY BHATTACHARYYA For the appellants : Mr. Anil Kumar Dugar, Mr. Rajarshi Chatterjee. For the Union of India : Mr. Y. J. Dastoor, ld. A.S.G., Mr. Siddhartha Lahiri. For respondent nos.1 to 4 : Mr. Somnath Ganguly, Mr. Sukalpa Basu, Ms. Sabnam Basu. Judgment This appeal by the assessee is directed against an order dated 4th October, 2021 passed by the Learned Single Bench in W.P.A. No.13009 of 2021. The appellants / writ petitioners had challenged t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Bank of India, the banker of the appellants by letter dated 20th January, 2021. The said letter carries a heading Provisional attachment of property under Section 83 of the CGST Act, 2017 . The letter states that proceedings have been launched against the assessee under Section 67 of the CGST Act to determine the tax of any other amount due from the said person and that information has been received by the Department that the assessee has other accounts in the State Bank of India, CAG Kolkata Branch and in order to protect the interest of revenue and in exercise of powers conferred under Section 83 of the CGST Act, the authority provisionally attached the bank account mentioned in the said communication. Thereafter, summons under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared on payment of appropriate tax / duty and such payments were made through banking challans to the suppliers. Further, it is stated that the bills for the transporters were also paid through banking channel and reiterated further that transactions are genuine. With the above statements, they sought for revoking the order of attachment. The respondent authorities by communication dated 14th June, 2021 rejected the request for release of the attachment of the bank account but the reasons stated in the said communication is that only Rs.10 lakhs has been paid by the appellants against the irregular input tax credit amount deducted to the tune of Rs.83.79 lakhs approximately as per the proceedings initiated under Section 67 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to do so for the purpose of protecting interest of Government revenue. It has been held that Section 83 indicates first, the necessity of the formation of opinion by the Commissioner; second, the formation of opinion before ordering a provisional attachment; third the existence of opinion that it is necessary so to do for the purpose of protecting the interest of the government revenue; fourth, the issuance of an order in writing for the attachment of any property of the taxable person; and fifth, the observance by the Commissioner of the provisions contained in the rules in regard to the manner of attachment. Further, it has been held that formation of the opinion must be based on tangible material, which indicates a live link to the nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear and power can be exercised 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 learned senior standing counsel would vehemently contend that pursuant to the action initiated under Section 67, sufficient material has been unearthed and proceedings are being initiated and ultimately show cause notice will be issued and if the appellants do not secure the amount indicated by the authorities in the communication dated 14th June, 2021, namely Rs.87.79 lakhs (approximately), the interest of revenue would suffer. In fact, such was the submission made by the Union of India in the case of UFV India Global Education Vs. Union of India reported in [2020] 122 taxm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under Section 74 of the CGST Act. For the above reasons, the writ appeal and the connected application are allowed. Consequently, the writ petition is allowed and the order under appeal dated 20th January, 2021 and the communication dated 14th June, 2021 are quashed and the respondents are directed to intimate the appellants banker within one week from the date of receipt of the server copy of this order to lift the attachment of the said bank account. We make it clear that we have tested the correctness of the order dated 20th January, 2021 qua the effect of it on conclusion of the proceedings under Section 67 of the CGST Act and simultaneously preserving the right of the department to exercise such powers if so advised under circums ..... X X X X Extracts X X X X X X X X Extracts X X X X
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