Section 83 of the CGST Act, 2017—Provisional Attachment of Bank account –Cash Credit Account --- The petitioner challenged the order of provisional attachment of a cash credit account and submitted that the impugned order of provisional attachment of the cash credit account has been passed in the Form GST DRC-22 dated 29.11.2021, under the provisions of Section 83 of the Act. The cash credit account have been opened to enable the applicant to borrow the money from the Bank for the purpose of its business. The decision of this Court in the case of Kaneria Granito Ltd. has been followed in various other matters of the present type over a period of time. The court observed that the settled position of law appears to have been very conveniently over-looked by the respondent. The Principal Commissioner distinguishing the orders passed by this Court in the case of M/s. Formative Tex Fab vs. State of Gujarat held that the order of provisional attachment was passed by the Assistant Commissioner and not by the Principal Commissioner. The court observed that the Principal Commissioner, Surat is in contempt. He owes an explanation as to on what basis he has distinguished all the orders passed by this Court.

Held that:- The Hon’ble High Court issued Notice to the respondents, returnable on 12.01.2022.