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The power under Section 83 of the Act is to be exercised by the commissioner who must be of the opinion that for the purpose of protecting interest of the Government revenue there could be an attachment provisionally of property, bank account belonging to the taxable person.

Section 83 of the CGST Act, 2017— Provisional Attachment of Bank Accounts –-- The petitioner challenged the order passed under Section 83 of the Act on various legal contentions including that the such power is to be exercised by the commissioner who must be of the opinion that for the purpose of protecting interest of the Government revenue there could be an attachment provisionally of property, bank account belonging to the taxable person. The proceedings were initiated against the petitioner under Section 67 of the Act. The petitioner submitted that as regards to the said notice he had made out a reply dated 16.02.2021 and that even before any reply was made out, attachment of the bank account was made. The respondent counsel submitted that that they do not intend to further proceed with the proceedings under Section 67 of the Act. However, it is submitted that invoices were not available as regards to the claim of credit for input tax of 28,75,000/- the petitioner may be called upon to secure the interest of the revenue. The Court observed that the petitioner on furnishing bank guarantee of Rs. 7,00,000/- the order of attachment may be lifted. Held that:- The Hon’ble High Court set aside the order. However, it is made clear that the petitioner is required to maintain a balance of a sum of Rs. 7,00,000/- in his account and would not utilize the same, as it would be in the nature of security to be maintained till assessment proceedings are concluded.
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