Any use of discretionary power exercised for an unauthorized purpose amounts to malice in law. The order of provisional attachment of the five bank accounts of the writ applicant under Section 83 of the Act is quashed and set aside.
Section 83 of the CGST Act, 2017 — Attachment of Bank Account – The petitioner prayed for a direction to the Respondent to immediately remove attachment of his company’s five bank Accounts. The respondent in GST DRC-22 stated that proceedings have been launched against the aforesaid taxable person under section 74(1) of the Act to determine the tax or any other amount due from the said person. The court observed that the absence of any cogent or credible material, if the subjective satisfaction is arrived at by the authority concerned for the purpose of passing an order of provisional attachment under Section 83 of the Act, then such action amounts to malice in law. Malice in its legal sense means such malice as may be assumed from the doing of a wrongful act intentionally but also without just cause or excuse or for want of reasonable or probably cause. Any use of discretionary power exercised for an unauthorized purpose amounts to malice in law.
Held that:- The Hon’ble High Court allowed writ application and quashed and set aside the order of provisional attachment of the five bank accounts under Section 83 of the Act.