Section 83 of the CGST Act, 2017— Provisional Attachment of Bank Account-– The petitioner challenged the order of provisional attachment of the Bank account under section 83 of the Act, on the ground of the violation of provisions of law. The petitioner submitted that the recourse to the powers of section 83 of the Act could be only in exception circumstances. The counsel for petitioner submitted that the action has been taken without taking any legal recourse as required under the law. He has also relied heavily on the Circular No.CBEC-20/16/05/2021-GST/359. There was nothing pending for the authority concerned to take recourse to the provisional attachment. He relied upon the decision of the Arya Metacast Pvt. Ltd. vs. State of Gujarat. The court observed that there had been a cancellation of registration of supplier of the petitioner, on the ground that they received bogus bills and invoices without actual supply of goods. The respondent alleged that the petitioner was involved in availing and utilizing the ITC without there being any actual supply of goods from the supplier. This Court relied the decision in case of Arya Metacast and further observed that the recourse to Section 83 is to be made sporadically and consciously for which the detailed guidelines have been issued by the CBEC itself. The proper officer is always required to ensure that there are action of the provisional attachment may not hamper normal business activities of the taxable person.

Held that:- The Hon’ble High Court set aside the order.