2022-VIL-329-AP

SGST High Court Cases

GST - Section 83 - Challenge to order of provisional attachment - During the course of search operations respondent authorities seized the Books of Accounts and issued summons under Section 70 of the APGST Act, 2017 - By way of the impugned provisional orders of attachment, the accounts of the petitioner have been provisionally attached – Respondent contends that as per the information available with the Department and in order to protect the interest of the Government revenue, in exercise of the powers conferred under Section 83 of the Act, the account is provisionally attached – HELD – except saying that the orders of provisional attachment are passed in order to protect the interest of the Government revenue, no other reasons are assigned by the respondent in the impugned orders of provisional attachment - When sub-Rule (5) of Rule 159 of the CGST Rules specifically provides for filing objections against the orders of provisional attachment, the contention that the reasons for ordering provisional attachment were recorded in the Note File and that there is no need to state the same in the provisional order of attachment, cannot stand for judicial scrutiny - Unless reasons are recorded, the assessee cannot be expected to file any objections under the provisions of sub-Rule (5) of Rule 159 of the Rules - The Hon’ble Supreme Court, in Radha Krishan judgment categorically ruled that the formation of opinion on the basis of tangible material which indicates the necessity to order provisional attachment to protect the interest of the Government revenue is mandatory - Having regard to the language employed by the legislature in Section 83 of the CGST Act and Rule 159(5) of the CGST Rules, the respondent failed to adhere to the mandatory requirement of formation of opinion - the petitioner has made out prima facie case for grant of interim relief - there shall be interim suspension of the provisional attachment orders – matter is posted

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