2022-VIL-770-GUJ

SGST High Court Cases

GST – Validity attachment notice issued under Section 83 of the CGST Act, 2017 - Petitioner seeking set aside of attachment notice issued under Section 83 of the CGST Act, 2017 and de-freeze bank the respective bank account of the petitioner – initiation of attachment proceedings against the petitioner based on search operation carried out on third party – HELD - The pendency of the proceedings is sine qua non for exercise of powers of provisional attachment. While earlier section 83 could be invoked only during pendency of certain proceedings, now it can be invoked "after initiating proceedings under the Chapters mentioned therein" – in Section 83, as amended from 01.01.2022, the fundamental requirement remains valid that there must be proceeding pending before the section could be invoked and provisional attachment could be acted upon - the impugned notice was issued on 06.01.2022. There is no gainsaying that no proceedings were pending. The summons under section 70(1) of the CGST Act and GGST Act came to be issued only on 21.01.2022 - The very invocation of powers and issuance of order dated 06.01.2022 was therefore in absence of any proceedings initiated. The powers under section 83 could not have been exercised. The impugned order stands illegal when it seeks to provisionally attach the bank account of the petitioner - It is only on this ground that the impugned Order is liable to be set aside - The attachment order is set aside. The respondent authorities may continue to proceed further pursuant to the summons and are at liberty to consider imposing the provisional attachment under section 83 of the CGST Act in accordance with law - petition is partly allowed

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