Ashok Kumar Vishwakarma Vs Union of India & Ors. (Bombay High Court)
The petition was filed under Article 226 of the Constitution of India challenging two provisional attachment orders issued under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act). The first order dated 25 April 2022 attached the petitioner’s bank account, while the second order dated 6 April 2023 attached an immovable property. Both orders were passed by the Commissioner, CGST & Central Excise, Bhiwandi Commissionerate.
The petitioner contended that the Commissioner had passed the provisional attachment orders without forming an opinion based on tangible material. It was argued that such action violated principles of natural justice. In support, reliance was placed on the Supreme Court decision in M/s. Radha Krishan Industries vs. State of Himachal Pradesh & Ors., to submit that provisional attachment must be based on proper satisfaction and adherence to legal safeguards.
The Court examined the impugned orders and found that proceedings had been initiated against the petitioner under Sections 67 and 74 of the CGST Act to determine tax liability. The order dated 6 April 2023 recorded that, during investigation, it was revealed that the petitioner had allegedly availed and passed on ineligible Input Tax Credit (ITC). It further recorded that, based on reports from various CGST Commissionerates, the petitioner had availed ineligible ITC amounting to approximately Rs. 3.21 crore from non-existing or non-genuine entities, in contravention of Section 16 of the CGST Act. The investigation was still ongoing at the time the provisional attachments were made.
