The cash credit account cannot be attached in exercise of the power under Section 83 of the GST Act.
Section 83 of the CGST Act, 2017—provisionsal Attachment of Bank Accounts —–The petitioner’s bank accounts and immovable property were attached under section 83 of the Act. The court asked the respondent as to whether action on part of the department to attach the bank accounts would be justified on the ground that interest of the revenue could be said to be secured for the time being with the provisional attachment of the immovable properties, then why not allow the applicant to operate his bank accounts. The respondent counsel submitted that the applicant has challenged the attachment of immovable property also and in case, if he succeeds the department would loose everything.
Held that:- The Hon’ble High Court as ad- interim order held that the Cash Credit Account and Current Account are to be defreezed. The Fixed Deposits shall continue under provisional attachment. Listed this matter along with other Civil Application in the third week of January, 2021.