Section 83 of the CGST Act, 2017 – Provisional Attachment of Bank Accounts  - The petitioner prayed for a declaration that the circular dated 23rd February, 2021 is ultra vires the provisions of the Act or in the alternative to read down the circular dated 23rd February, 2021 to make the recording of reasons or grounds of attachment mandatory in the attachment order; also prayed for writ of certiorari for quashing the impugned freezing orders dated 7th December, 2021. The petitioner submitted that he was informed on 7th December, 2021 by its banks that the accounts of the petitioner with various banks had been frozen. The counsel for the petitioner submitted that the said provisional order was not in compliance with the section 83 and was not issued in the manner prescribed under Rule 159, as in terms of circular dated 23rd February, 2021 unless the opinion formed by the Commissioner is communicated to the petitioner, the petitioner would not be able to raise any objection. The counsel for the Revenue submitted that impugned circular has been issued by the respondents in compliance with the principles of law laid down by the Hon’ble Supreme Court in case of Radha Krishan Industries (supra) 35 TAXLOK.COM 018. The petitioner is fully aware of the action initiated by the respondents. If the opinion formed by the Commissioner before issuance of the order of provisional attachment would have been issued to the petitioner at the first instance, the petitioner in that event would have withdrawn the amount lying in the bank account which would have been against the interest of revenue. The court observed that the remedy provided under rule 159, to an assessee to lodge the objection can be exercised effectively only if the petitioner knows the reasons or opinion prima facie formed by the Commissioner before exercising the power under section 83. Unless such prima facie opinion atleast at this stage is communicated to the petitioner, the petitioner would not be able to lodge the objection. The petitioner would be entitled to the copy of the opinion formed by the Commissioner before filing an objection.

Held that:- The Hon’ble High Court directed the respondents to furnish a certified copy of the opinion/reasons formed by the Commissioner under section 83 read with Rule 159 under clause 3.1.4 of the circular dated 23rd February, 2021 to the petitioner within one week. The petitioner is allowed to raise objection to the prima facie opinion formed by the Commissioner within one week from the date of furnishing such copy of the opinion to the effect that the property attached was not liable of the petitioner.