There being no material to implicate the petitioner in the alleged fraudulent transaction, attachment of bank account by respondent cannot be legally sustained.
Section 83 of the CGST Act — Attachment of Bank Accounts -- The petitioner, a supplier of diamonds submitted that he had supplied diamonds to M/s. Nebal Tradings during the period 2017-18 and 2018-19 and tax was paid on the said transaction. Further, no investigation is pending against him and no summons or notice has been served on him. The respondent issued an instruction to the Banker of the petitioner to freeze its Bank account because Nebal Trading had transferred certain amounts to the petitioner's account. The petitioner prayed for quashing the order and to lift the attachment over the Bank account. The court observed that there is absolutely no basis in law for proceeding against the petitioner, in connection with offences alleged to have been committed by other person.
Held that:- The Hon’ble High Court allowed the petition by quashing communication and directing the bank to treat the attachment over the Bank account of the petitioner with it as lifted.