The pre-requisite for exercise of powers of provisional attachment under Section 83 of the Act is the pendency of the proceedings under the aforementioned provisions, i.e., Sections 62, 63, 64, 67, 73 or 74 of the Act. In absence of this the said order is not valid
Section 83 of the CGST Act, 2017—Provisional Attachment of Bank Accounts —– The petitioner challenged attachments orders dated 19.05.2020 and 10.07.2020. The order dated 19.05.2020 directed provisional attachment of bank account under Section 83 of the Act. The other order dated 10.07.2020 pertains to the adjudication of the objections filed by the petitioner under Rule 159(5). Thereafter, a show -cause notice was issued under Section 74 of the Act. The respondent counsel on being asked submitted that no proceedings were pending under any of the Section 62, 63, 64, 67, The 73 or even 74 of the Act prior to the issuance of the order dated 19.05.2020, directing provisional attachment of the petitioner’s bank accounts. The court observed that the pre-requisite for exercise of powers of provisional attachment under Section 83 of the Act is the pendency of the proceedings under the aforementioned provisions, i.e., Sections 62, 63, 64, 67, 73 or 74 of the Act. Thus on the date when order dated 19.05.2020 was issued; the necessary jurisdictional elements were not present. As such said order is not valid in the eyes of law.
Held that:- The Hon’ble High Court quashed the orders dated 19.05.2020 and 10.07.2020.
The pre-requisite for exercise of powers of provisional attachment under Section 83 of the Act is the pendency of the proceedings under the aforementioned provisions, i.e., Sections 62, 63, 64, 67, 73 or 74 of the Act. In absence of this the said order is not valid
Section 83 of the CGST Act, 2017—Provisional Attachment of Bank Accounts —– The petitioner challenged attachments orders dated 19.05.2020 and 10.07.2020. The order dated 19.05.2020 directed provisional attachment of bank account under Section 83 of the Act. The other order dated 10.07.2020 pertains to the adjudication of the objections filed by the petitioner under Rule 159(5). Thereafter, a show -cause notice was issued under Section 74 of the Act. The respondent counsel on being asked submitted that no proceedings were pending under any of the Section 62, 63, 64, 67, The 73 or even 74 of the Act prior to the issuance of the order dated 19.05.2020, directing provisional attachment of the petitioner’s bank accounts. The court observed that the pre-requisite for exercise of powers of provisional attachment under Section 83 of the Act is the pendency of the proceedings under the aforementioned provisions, i.e., Sections 62, 63, 64, 67, 73 or 74 of the Act. Thus on the date when order dated 19.05.2020 was issued; the necessary jurisdictional elements were not present. As such said order is not valid in the eyes of law.
Held that:- The Hon’ble High Court quashed the orders dated 19.05.2020 and 10.07.2020.