TMI Blog2023 (11) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... date of order made under sub-section (1). Here, according to the respondent, the petitioner has admitted his tax liability and promised to pay, but, he has not paid the government dues and therefore, the respondent according to its affidavit-in-reply by way of abundant precaution for protecting the revenue s interest has proceeded to attach and freeze the bank accounts on 27.02.2020 and 02.03.2020. According to the Respondent, more than Rs. 1,00,00,000 is available in the State Bank Accounts and the respondent department exercising the powers vested under Section 83(2) of the CGST Act after obtaining the approval of the competent authority has again sent the letter on 09.02.2021 to the banks directing them to freeze the facility of withdrawal of amount from these accounts for one more year in order to protect the government revenue. Entertainment of the challenge to the merit is not desirable at this juncture at all as appropriate Authority would determine that aspect and statutory remedies would also demand address to such core issue at the relevant point of time. Therefore, this Court has chosen not to enter into the details of business model as explained in the statement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-year period as prescribed under the law, it is incumbent upon the authorities to release the provisional attachment by informing the bank on issuance of a fresh order of provisional attachment since the very purpose for which this exercise of provisional attachment was done is not completed. Petition disposed off. - HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI AND HONOURABLE MS. JUSTICE NISHA M. THAKORE Appearance: For the Petitioner(s) No. 1,2,3,4,5,6,7,8,9 : Ms. Kruti M Shah(2428) For the Respondent(s) No. 1 : DS Aff. Not Filed (N) For the Respondent(s) No. 2 : Mr Nikunt K Raval (5558) CAV JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI) 1. By way of the present petition, the petitioners beg to challenge the action of the respondent no. 2 directing the Branch Manager of (i) AU Small Finance Bank (ii) Kotak Mahindra Bank, and (iii) State Bank of India by communications dated 27.02.2020 and 02.03.2020 not to allow the petitioner to operate the bank account and further directed to stop the operation of the bank locker by exercising powers under Section 83(1) of the Central Goods and Service Tax, Act 2017 (hereinafter referred to as the CGST Act ). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res approximately inclusive of interest and penalty. Moreover, the records are seized without issuing authorization as prescribed under Rule 139(2) of the CGST Rules, 2017. During the investigation, the lockers of the petitioner were sealed. The details of bank lockers also had been provided in the memo of petition. They all are in the AU Small Finance Bank, Kotak Mahindra Bank and State Bank of India. 2.6. The petitioner also has urged that by way of seizure order under Rule 139(2), the officer of the respondent no. 2 had seized other documents, laptop, keys of the lockers etc. and by drawing panchnama the cash amount of Rs. 58,25,650/- had been seized. After recording criminal case against Mr. Jain being Criminal Case No. 9753 of 2020 culminated into the charge-sheet dated 07.08.2020, he was sent to judicial custody. 2.7. It is further urged that during the pendency of the proceedings, Mr. Jain and other family members came to be implicated in another FIR registered with the CID Crime Vadodara Police Station being I-CR No. 03 of 2020 on 01.08.2020 for the offence under Sections 406, 409, 420, 120(B) of the Indian Penal Code, Section 3 of the Gujarat Protection of Interest of Depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roup 39107409367 Grabdeal International 39107548607 Pusphpaben Babulal Jain 20091452699 and, debit may be allowed to be made from the said accounts; (c) This Hon ble Court may be pleased to issue appropriate writ of mandamus or any other appropriate writ directing the respondent no. 2 to release the articles and cash amount seized under seizure Panchnama which is at Annexure-B; (d) Pending admission, final hearing and disposal of this petition, an ex-parte ad-interim order may be passed in terms of prayer clause (b); (e) Grant such other and further relief as thought fitin the interest of justice. 2.11. Draft amendment had been moved by the petitioner on 18.10.2021 where the challenge is made to the new order dated 09.02.2021 of provisional attachment of bank account under section 83 of the act on the ground that the same is illegal and against the facts and provisions of law and without following the due procedure prescribed under the Act and the Rules seeking the same to be quashed and set aside. 3. Affidavit-in-reply is filed for and on behalf of the respondent no. 2 Joint Commissioner having the office at the office of the Principal Commissioner, Central GST, GST Bhawan, Subhan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk accounts have been closed after a certain time and new accounts have been opened to hide the transactions and alleged illegal activities so as to escape from paying the government tax. The petitioner is engaged in the activity of financial business without permission and without getting registered with the GST department and making evasion of the huge amount of service tax and GST. His family members have opened many bank accounts, the details of which have been provided. 3.6. On the basis of the huge transactions which have taken place in the bank accounts and his admission of Rs. 51 crores of tax liability, the revenue chose to attach the bank accounts of his under the powers vested on competent authority vide Section 83 of the CGST Act and the letters had been sent to the banks directing them to freeze the debit facility. Provisional attachment is permitted including of the Bank Accounts under Section 83(1) of the CGST Act, 2017. The investigation is in progress and as Mr. Jain has no intention to pay government dues, the respondent department under the powers vested vide Section 83(2) had sent letters 09.02.2021 to the bank directing to freeze the debit facility/withdrawal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducation guide 2021 by Central Board of Excise and Customs (CBEC) has also been explained. Moreover, the CBEC circular no. 96/7/2007-ST dated 23.08.2007 which clarified the business chit funds where commission is charged and the same is taxable, has been reproduced. It is attempted to explain that gross amount received by chit could not be taxable. The taxability would arise only when the commission is charged or any amount is retained by foreman for operating the chit fund therefore, entire amount of deposit received from members when is charged to tax, according to the petitioner is unjustifiable. 5.3. It is also the say of the petitioner that a mere transaction in money cannot be considered as service under Section 65B(44) of Finance act, 1994 and the services rendered by the foreman in the business chit fund is not liable to service tax. According to the petitioner, even assuming without acceptance that service tax is payable, the gross amount shall be considered as inclusive of tax. Under Section 67(2) when new taxes are collected separately, the gross amount has to be considered to be inclusive of tax liability as value of taxable service plus service tax payable and this has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, the same shall need to be examined bearing in mind settled principles of law as petitioner would have various opportunities to question and challenge the outcome. This action of the respondent is questioned, at the stage, when the time period prescribed statutorily during the pendency of the petition is not yet over in making an inquiry and when the show cause notice has already been issued upon the petitioner on 23.03.2021 and the further attachment order for a period of one year is passed under Section 83 of the CGST Act, this Court shall need to decide maintainability as also the requirement of interference. 8. The moot question which has pained the petitioner and which would also require consideration is the question of attachment to the bank accounts during the pendency of investigation as also a fresh order of extension beyond the period of one year. 8.1. For appreciating this, apt would be to refer to the provision of law which needs its appreciation in the backdrop of factual details of search and seizure as also of initiation of criminal prosecution against the petitioner. 8.2. Section 83 is reproduced herein under for the better appreciation of the controversy in que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year in order to protect the government revenue. 8.5. From the version given by the respondent, the provisions of CGST Act would be applicable in the definition of services under the CGST Act particularly Section 2(102) which defines the service as anything other than goods, money and securities but includes activities relating to money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. Respondent s version is that activities of the petitioner and the business model followed by the petitioner as also given in his statement relates to the activities relating to the money and the applicant is rendering financial services/ business support services for consideration, therefore, the GST liability would be applicable on the amount of consideration received by him in his individual capacity. There is a joint venture also between him and the subscribers and the CBEC circular on the subject matter of service tax on the joint-venture is also said to have applied in case of the petitioner. Whereas according to the Petitioner, the business model of his is not attrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys down the format in which the order has to be issued provisionally attaching the property and communication thereof to the financial institution. The form of the order also shows that it is to be addressed to the taxable person and directions to be issued for not allowing any debit. 10.1. Referring to the Coordinate Bench decision in case of Kushal Ltd. vs. Union of India [Special Civil Application No. 19533/2019 decided on 17.12.2019], it noticed the interim order of the Apex Court where it stayed those directions till the challenge before the Apex Court was finalized. It eventually held that Section 83 of the act is in pari materia with provisions of Section 281B of Income Tax Act, 1961. Section 281B of the Act also provides for a provisional attachment of the property of an assessee pending that the assessment/reassessment proceedings with the income tax department when it believes that such attachment is necessary to protect the interest of the revenue. The provisions of Section 281B of the Act is extracted to demonstrate that the provision of Section 83 has been framed along the identical line as Section 281B. The Court noticed that there are certain guidelines for making pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Article 226 of the Constitution is plenary in nature and is not limited by any other provision of the Constitution. This power can be exercised by the High Court not only for issuing writs in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari for the enforcement of any of the Fundamental Rights contained in Part III of the Constitution but also for any other purpose . 15. Under Article 226 of the Constitution, the High Court, having regard to the facts of the case, has a discretion to entertain or not to entertain a writ petition. But the High Court has imposed upon itself certain restrictions one of which is that if an effective and efficacious remedy is available, the High Court would not normally exercise its jurisdiction. But the alternative remedy has been consistently held by this Court not to operate as a bar in at least three contingencies, namely, where the writ petition has been filed for the enforcement of any of the Fundamental Rights or where there has been a violation of the principle of natural justice or where the order or proceedings are wholly without jurisdiction or the vires of an Act is challenged. There is a plethora of case-law on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a legislation is challenged; (iv) An alternate remedy by itself does not divest the High Court of its powers under Article 226 of the Constitution in an appropriate case though ordinarily, a writ petition should not be entertained when an efficacious alternate remedy is provided by law; (v) When a right is created by a statute, which itself prescribes the remedy or procedure for enforcing the right or liability, resort must be had to that particular statutory remedy before invoking the discretionary remedy under Article 226 of the Constitution. This rule of exhaustion of statutory remedies is a rule of policy, convenience and discretion; and (vi) In cases where there are disputed questions of fact, the High Court may decide to decline jurisdiction in a writ petition. However, if the High Court is objectively of the view that the nature of the controversy requires the exercise of its writ jurisdiction, such a view would not readily be interfered with. 28 These principles have been consistently upheld by this Court in Seth Chand Ratan v Pandit Durga Prasad (2003) 5 SCC 399, Babubhai Muljibhai Patel v Nandlal Khodidas Barot (1974) 2 SCC 706 and Rajasthan SEB v. Union of India (2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l citation omitted]. 31 A body of precedent has emerged in the High Courts on the exercise of the power under Section 83 of the CGST Act (akin to the State GST Act ( SGST Act ). The shared learning which emerges from these decisions of the High Court needs recognition. In Valerius Industries v Union of India 2019 (30) GSTL 15 (Gujarat) , the Gujarat High Court laid down the principles for the construction of Section 83 of the SGST/CGST Act. The High Court noted that a provisional attachment on the basis of a subjective satisfaction, absent any cogent or credible material, constitutes malice in law. It further outlined the principles for the exercise of the power: 52. [ ] The order of provisional attachment before the assessment order is made, may be justified if the assessing authority or any other authority empowered in law is of the opinion that it is necessary to protect the interest of revenue. However, the subjective satisfaction should be based on some credible materials or information It is not any and every material, howsoever vague and indefinite or distant, remote or far-fetching, which would warrant the formation of the belief. (1) The power conferred upon the authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat on his opinion being challenged, the competent officer must be able to show the material on the basis of which the belief is formed. 33. In Patran Steel Rolling Mill v Assistant Commissioner of State Tax Unit 2 2019 (20) GSTL 732 (Gujarat) , the Gujarat High Court cited two instances in which provisional attachment would be apposite, these being where the assessee is a fly by night operator and if the assessee will not be able to pay its dues after assessment. 34 Similar to the decisions of the Gujarat High Court, other High Courts have recognized the restrictive nature of the power of provisional attachment under Section 83 of the SGST Act and the need for it to be based on adequate substantive material. The High Courts have also underscored the extraordinary nature of this power, necessitating due caution in its exercise. 35 The Delhi High Court, in Proex Fashion Private Limited v Government of India32 outlined the following statutorily stipulated conditions for the invocation of Section 83 of the SGST Act: ( i) Order should be passed by Commissioner; (ii) Proceeding under Section 62 or 63 or 64 or 67 or 73 or 74 should be pending; Bindal Smelting Private Limited v Addl. Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opinion has to be formed that to protect the interest of Revenue an order of provisional attachment is necessary. The format of the order, i.e. the form GST DRC-22 also specifies the particulars of a registered taxable person and which proceedings have been launched against the aforesaid taxable person indicating a nexus between the proceedings to be initiated against a taxable person and provisional attachment of bank account of such taxable person. (emphasis supplied) C.3 Delegation of authority under CGST Act 38. The learned counsel for the respondent State, during the course of his submissions, has also sought to justify the delegation of powers by the Commissioner to the Joint Commissioner by way of the impugned notification dated 21 October 2020 for the purpose of attachment of properties under Section 83 of the HPGST Act. In this regard, reliance was placed on Nathanlal Maganlal Chauhan v State of Gujarat 2020 SCC Online Guj 1811, where the Gujarat High Court was considering the validity of a notification by which the Commissioner of State Tax had delegated all the functions under the SGST Act to the Special Commissioner and Additional Commissioners of State Tax. In reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of reference: 83. 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 for the purpose of protecting 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. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under subsection (1). 40. The marginal note to Section 83 provides some indication of Parliamentary intent. Section 83 provides for provisional attachment to protect revenue in certain cases . The first point to note is that the attachment is provisional provisional in the sense that it is in aid of something else. The second point to note is that the purpose is to protect the revenue. The third point is the expression in certain cases which shows that in order to effect a provisional attachment, the conditions which have been spelt out in the st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isional attachment is levied must be specified in the rules made pursuant to the provisions of the statute. 42. Under sub-Section (2) of Section 83, a provisional attachment ceases to have effect upon the expiry of a period of one year of the order being passed under sub-Section (1). The power to levy a provisional attachment has been entrusted to the Commissioner during the pendency of proceedings under Sections 62, 63, 64, 67, 73 or as the case may be, Section 74. Section 62 contains provisions for assessment for non-filing of returns. Section 63 provides for assessment of unregistered persons. Section 64 contains provisions for summary assessment. Section 67 elucidates provisions for inspection, search and seizure. Before we dwell on Section 74, it would be material to note the provisions of Section 70 which are extracted below: 70. Power to summon persons to give evidence and produce documents. - (1) The proper officer under this Act shall have powers to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry in the same manner, as provided in the case of a civil court under the provisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notice under sub-section (1), pay the amount of tax alongwith interest payable under section 50 and a penalty equivalent to fifteen per cent of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. (6) The proper officer, on receipt of such information, shall not serve any notice under subsection (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. (7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. (8) Where any person chargeable with tax under sub-section (1) pays the said tax alongwith interest payable under section 50 and a penalty equivalent to twenty five per cent of such tax within thirty days of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded. (9) The proper officer shall, after considering there presentation, if any, m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (5) of Section 74, before the service of a notice under sub-Section (1), the person who is chargeable with tax may pay the tax together with interest and a penalty equivalent to fifteen per cent of the tax on the basis of their own ascertainment of the tax or as ascertained by the proper officer and inform the proper officer of the payment having been made upon receipt of the information. Sub-Section (6) stipulates that the proper officer shall not serve any notice under sub-Section (1) in respect of the tax so paid or any penalty payable under the provisions of the Act or the Rules. 47. On the other hand, when the proper officer is of the opinion that the amount which has been paid under sub-Section (5) falls short of the amount which is actually payable, a notice under sub-Section (1) is to issue for the amount which falls short of what is actually payable. Sub-Section (8) contains a stipulation that where a person who is chargeable with tax under sub-Section (1) pays the tax together with interest and a penalty of twenty-five per cent of the tax within thirty days of the issuance of the notice, all proceedings in respect of the notice shall be deemed to be concluded. Under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponents of the statute are integral to a valid exercise of power. In other words, when the exercise of the power is challenged, the validity of its exercise will depend on a strict and punctilious observance of the statutory pre- conditions by the Commissioner. While conditioning the exercise of the power on the formation of an opinion by the Commissioner that for the purpose of protecting the interest of the government revenue, it is necessary so to do , it is evident that the statute has not left the formation of opinion to an unguided subjective discretion of the Commissioner. The formation of the opinion must bear a proximate and live nexus to the purpose of protecting the interest of the government revenue. 49. By utilizing the expression it is necessary so to do the legislature has evinced an intent that an attachment is authorized not merely because it is expedient to do so (or profitable or practicable for the revenue to do so) but because it is necessary to do so in order to protect interest of the government revenue. Necessity postulates that the interest of the revenue can be protected only by a provisional attachment without which the interest of the revenue would stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover escaping assessment. However, the order of provisional attachment can be passed by the Commissioner when the Commissioner is of the opinion that for the purpose of protecting the interest of the Government Revenue, it is necessary so to do. Therefore, before passing the order of provisional attachment, there must be an opinion formed by the Commissioner that for the purpose of protecting the interest of the Government Revenue during the pendency of any proceedings of assessment or reassessment, it is necessary to attach provisionally any property belonging to the dealer. However, such satisfaction must be on some tangible material on objective facts with the Commissioner. In a given case, on the basis of the past conduct of the dealer and on the basis of some reliable information that the dealer is likely to defeat the claim of the Revenue in case any order is passed against the dealer under the VAT Act and/or the dealer is likely to sale his properties and/or sale and/or dispose of the properties and in case after the conclusion of the assessment/reassessment proceedings, if there is any tax liability, the Revenue may not be in a position to recover the amount thereafter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Commissioner, or any other officer authorised by him in this behalf, circumstances of the case justify it. 53. Under sub-Rule (1) of Rule 159, an attachment of property by the Commissioner under Section 83 is effected by passing an order mentioning the details of the property which is attached. The form in which the order is to be made is prescribed in form GST DRC22. This form is extracted below: FORM GST DRC - 22 [See rule 159(1)7] Reference No.: To Date: .Name ...Address (Bank/ Post Office/Financial Institution/Immovable property registering authority) Provisional attachment of property under section 83 It is to inform that M/s (name) having principal place of business at . (address) bearing registration number as ... (GSTIN/ID), PAN - .. is a registered taxable person under the SGST/CGST Act. Proceedings have been launched against the aforesaid taxable person under section --- of the said Act to determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest of revenue in the proceedings launched against the person. Now, there is no such proceedings pending against the defaulting person which warrants the attachment of the said property. Therefore, the said property may be restored to the person concerned. Signature Name Designation Copy to - 55 A significant aspect of Rule 159(5) is that upon the levy of a provisional attachment, the person whose property is attached is empowered to file an objection within seven days on the ground that the property was or is not liable to attachment. In using the expression was or is no longer liable for attachment , the delegate of the legislature has comprehended two alternative situations. The first, evidenced by the use of the words was indicates that the property was on the date of the attachment in the past not liable to be attached. That is the reason for the use of the past tense was . The expression is not liable to attachment indicates a situation in praesenti. Even if the property, arguably, was validly attached in the past, the person whose property has been attached may demonstrate to the Commissioner that it is not liable to be attached in the present. 56. The second significant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 159 allows for the release of a property which either was or is no longer liable for attachment. The form in which such an order has to be passed, namely form GST DRC-23, states that now there is no such proceeding pending against the defaulting person which warrants attachment of the account or as the case may be, the property. Sub- Rules 5 and 6 do not expressly contemplate a situation in which the person whose property is attached can object on the ground that the attachment is in excess of the amount likely to be due for which proceedings have been launched under the Act. Nor does it provide for a specific opportunity to the taxable person to offer any alternative form of security in lieu of the attachment. Such an opportunity must be read in to the provision to allow for a fair working in practice. Whether any alternative security that is furnished by the taxable person should be accepted and if so, its sufficiency, is a matter for the Commissioner to determine. Undoubtedly, the taxable person may not have a right to demand that only a particular form of security must be accepted. The Commissioner has to decide whether the form of security offered would secure the interest of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC of Rs 3.25 crores against the purchase of goods valued at about Rs 21 crores from GM Powertech for 2017-18 and 2018-19 and a case of GST fraud had been instituted against the alleged supplier. On 19 January 2019, Form GST DRC-22 was issued to Fujikawa Power regarding the attachment of Rs 5 crores. On 29 January 2019, the appellant made a representation under Rule 159(5) for unblocking the credit and releasing the amount which was provisionally attached. On 30 January 2019, the order of provisional attachment was withdrawn completely with immediate effect. On 9 April 2019 and 5 July 2019 a representative of the appellant attended the case hearing. On 4 July 2020, an intimation was furnished to the appellant of the tax ascertained as payable under Section 74(5). According to the intimation, the appellant received among other items, lead ingots from GM Powertech during FY 2017-18 and 2018-19 and investigation had revealed that ITC had been fraudulently availed of by the supplier on the basis of the invoices of fake firms. The appellant had also availed of ITC due to inward supplies from GM Powertech. On 3 and 5 August 2020, the appellant filed its submissions under Rule 142(2) (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e remedy available in law. 59 The sole ground which has weighed with the High Court in holding that the writ proceedings were not maintainable is that the writ petitioner has not only (an) efficacious remedy, rather alternative remedy under the GST Act . In addition, the High Court has observed that the writ petition filed by GM Powertech against whom similar allegations have been leveled had been dismissed by relegating it to the pursuit of an alternative remedy. The learned senior counsel appearing on behalf of the appellant submitted that GM Powertech had been relegated to the pursuit of an alternative remedy since an order of assessment had been passed against it. However, insofar as the appellant is concerned, the writ proceedings were instituted to challenge the levy of a provisional attachment under Section 83 and there is no alternative remedy provided under the Act for challenging an order under Section 83. 12. This makes it quite clear that as per the decision of the Apex court that the Court shall need to examine whether the commissioner exercised the powers under Section 83 read with Rule 159 in accordance with law and the material fact for making determination needs to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted in three months period while not interfering with the attachment provisionally made the score of the opinion that if investigation is not completed within the said period, attachment shall need to go thereafter. 13. Provisional attachment of bank account without passing any fresh order after expiry of statutory period that too without compliance of necessary formalities would not be endorseable. The attachment of the bank account after expiry of prescribed period without passing fresh orders would surely be illegal in violation of rights of Assessee for carrying on business under article 19 of the Constitution of India as was held by the Calcutta High Court in case of Amazonite Steel Private Limited vs. union of India (supra). However, even after expiry of one-year period as prescribed under the law, it is incumbent upon the authorities to release the provisional attachment by informing the bank on issuance of a fresh order of provisional attachment since the very purpose for which this exercise of provisional attachment was done is not completed. Here one finds that after the expiry of one year period, the authority has issued the fresh order of provisional attachment, su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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