Mohammed Kamran Vs Additional Director General Directorate General of GST Intelligence (Karnataka High Court)
The Karnataka High Court considered a writ petition challenging a provisional attachment order dated 27.10.2025 issued under Section 83 of the CGST Act and seeking defreezing of the petitioner’s bank accounts. The petitioner, proprietor of a scrap trading business, contended that State GST authorities had already conducted inspection and sought documents relating to assessment years 2021-22 to 2025-26, which were duly furnished. The petitioner argued that subsequent proceedings initiated by the Directorate General of GST Intelligence (DGGI) were barred under Section 6(2)(b) of the CGST Act because State authorities had already initiated proceedings on the same subject matter.
The records showed that DGGI initiated investigation based on intelligence inputs alleging that the petitioner was part of a network of fictitious entities involved in fraudulent availment of input tax credit through fake invoices and circular trading. The petitioner was arrested on 16.09.2025 for offences under Section 132(1)(b) and (c) of the Act and remained in judicial custody until release on bail on 31.12.2025. During custody, the impugned provisional attachment order attaching bank accounts was issued.
The petitioner further contended that the attachment order violated principles of natural justice because no opportunity of hearing was granted before passing the order, particularly when the petitioner was in custody. It was also argued that the order lacked reasons and that the petitioner was willing to furnish security equivalent to the attached amount. Reliance was placed on the Circular dated 23.02.2021 governing provisional attachment proceedings.
