Page 200 - GSTL_26th March 2020_Vol 34_Part 4

694 GST LAW TIMES [ Vol. 34
Attachment (Contd.)
formation of opinion is arbitrary, capricious or whimsical - “Necessary”
requires that order and record indicating that it was necessary to take
drastic action of attachment - Section 83 of Central Goods and Services
Tax Act, 2017 — Bindal Smelting Pvt. Ltd. v. Addl. Dir. Gen., Directorate Gen. of GST
Intelligence (P & H) ................................... 592
— of Bank Account - Power of provisional attachment - It is drastic and far-
reaching power that must be used sparingly and only on substantive
weighty grounds and reasons - It should be exercised only to protect
interest of revenue and not to ruin business of any taxable person -
Section 83 of Central Goods and Services Tax Act, 2017 — Bindal Smelting
Pvt. Ltd. v. Addl. Dir. Gen., Directorate Gen. of GST Intelligence (P & H) ........... 592
— of bank account under GST - Provisional attachment order under Section
83 of Central Goods and Services Tax Act, 2017 can be passed only when
proceedings under Section 62 or 63 or 64 or 67 or 73 or 74 ibid pending -
A proceeding can be said to be pending only after issuance of notice - In
absence of any notice under Section 74 ibid, merely asking the assessee to
furnish certain documents which was produced later on and issuing
summons to witnesses, cannot be considered as pendency of proceedings
under the said Section so as to pass order under Section 83 ibid -
Department’s submission that failure to quote provisions of Section 74
ibid while asking assessee to furnish documents and issuing summons to
witnesses does not vitiate order, not acceptable when no ingredient of
Section 74 ibid found therein - Order of attachment quashed with liberty
to Department to issue notice by invoking appropriate provision of law -
Section 83 of Central Goods and Services Tax Act, 2017 — Anandbhavan
Properties Pvt. Ltd. v. Union of India (Kar.) ......................... 143
— of immovable property - It cannot be done for recovery of tax, penalty or
interest when there is no case that assessee had defaulted on payment of
tax - Gujarat Value Added Tax Act, 2003 — Veer Industries Ltd. v. Commercial
Tax Officer (Guj.) .................................... 162
— of land - Open land belonging to Company A leased to assessee company,
who had ownership of plant and machinery therein - HELD : Attachment
of plant and machinery was permissible - However, land under
ownership of Company A could not be attached and neither charge could
be created in favour of State Government nor revenue entry be mutated
in that regard in record of rights - Gujarat Value Added Tax Act, 2003 —
Veer Industries Ltd. v. Commercial Tax Officer (Guj.) .................... 162
— of property provisionally including bank account under GST, scope of -
See under PROVISIONAL ATTACHMENT OF BANK ACCOUNT ...... 148
— Provisional attachment of bank account - On the date of provisional
attachment of bank account, only a summons under Section 70 of Central
Goods and Services Tax Act, 2017 issued to petitioner and Section 70 ibid
not mentioned in Section 83 ibid - No proceedings pending against the
petitioner under Sections 62, 63, 64, 73 and 74 ibid - Bank account of the
taxable person can be attached against whom the proceedings under the
sections mentioned above initiated - Even though specified proceedings
launched against one taxable person, bank account of another taxable
person cannot be provisionally attached merely based on the summons
issued under Section 70 ibid to him - Order provisionally attaching the
bank account of petitioner without jurisdiction and liable to be quashed -
Section 159(1) of Central Goods and Services Tax Act, 2017 — Kaish Impex
Pvt. Ltd. v. Union of India (Bom.) .............................. 3

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