The provisional attachment of the cash credit account is not sustainable in law.
Section 83 of the CGST Act, 2017— Provisional Attachment of Bank Accounts –-- The applicant prayed to declare the impugned order dated 15.01.2018 as without authority of law and ultra vires the provisions of the Act; to quash the impugned Form DRC-22 dated 24.07.2020 attaching the properties and DRC-22 dated 23.09.2020 attaching the bank accounts and fixed deposits. The second order passed in Form GST DRC-22 dated 23rd September 2020 is with respect to the provisional attachment of the cash credit account. The applicant counsel submitted that the cash credit account cannot be attached provisionally by virtue of power under Section 83 of the Act. The court observed that the provisional attachment of the cash credit account is not sustainable in law. The law in this regard is no longer res integra.
Held that:- The Hon’ble High Court quashed the order of provisional attachment dated 23rd September 2020.