Case Law Details
Arramva Corporation & Ors. Vs Additional Director General & Ors. (Calcutta High Court)
Calcutta High Court held that provisional attachment of bank account under section 83 of the CGST Act based on tangible materials found against the petitioners during investigation is legal, valid and within jurisdiction.
Facts- Petitioner has filed this writ petition challenging the impugned order of provisional attachment of the Bank account of petitioner No.1/partnership firm, dated March 22, 2023, u/s. 83 of the CGST Act, 2017.
Petitioners have challenged the impugned action and order of provisional attachment u/s. 83 of the CGST Act mainly on the ground that the condition precedent to initiate proceeding under Chapter XII, XIV and XV of the GST Act is absent in the present case and that no notice/proceeding was ever initiated and/or is pending under the said chapters in term of Section 83 (1) of CGST Act at the time of taking such coercive action of freezing of bank account of Petitioner No. 1 and submits that the power to order provisional attachment u/s. 83 of the Act can only be exercised sparingly and in exceptional circumstances and cannot be used as a tool for witch-hunt expedition and on the basis of presumptions and assumptions and conjectures and surmises.
Conclusion- Held that on reading conjointly Section 1(2), Section 6(1), Section 83, Section 122(1) and Section 122 (1A), Clause (i), (ii), (vii) and (ix) thereunder and judgments referred above, relevant circulars and notification and taking into consideration materials found against the petitioners during investigation, CGST Guwahati authority’s action of attaching the bank account of the petitioner provisionally and the impugned order to this effect is very much legal, valid and within jurisdiction and is not liable to be interfered by this writ Court.
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