Section 83 of the CGST Act, 2017— Provisional Attachment of Bank Accounts -– A search was carried out against the petitioner company and it was alleged that the petitioner was engaged in the purchase of goods from 39 fictitious business firms and availed ITC of Rs. 138.71 crores. The provisional attachment order dated 26.7.2021 was passed against the petitioner. The petitioner prayed to declare that the respondents have no power to issue fresh order of provisional attachment. The court observed that with the issuance of SCN under section 74, the proceedings for adjudication have commenced. The petitioner sought to withdraw the Special Civil Application No. 2776 of 2022.

Held that:- The Hon’ble High Court directed the authorities to complete the adjudication proceedings time-bound. Once the proceedings are over, the rights of the parties shall stand crystallized leaving the order of provisional attachment to its own fate.