Page 105 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] KANAL ENTERPRISE v. STATE OF GUJARAT 207
and implementation of the orders of provisional attachment dated
30-7-2019 passed by the Respondent No. 2 and action of blockage of
input tax credit vide communication dated 20-7-2019 by the Re-
spondent No. 3.
(F) Ex parte ad interim relief in terms of para 9(E) may kindly be granted.
(G) Such other and further reliefs as may be deemed fit in the facts and
circumstances of the case may kindly be granted.
2. A coordinate Bench of this Court while issuing notice, passed the fol-
lowing order dated 10-10-2019 :
“1. Mr. Tushar Hemani, Senior Advocate, Learned Counsel with Mr.
Apurva Mehta and Mr. Vijay Patel, Learned Advocates for the petitioner
submitted that in this case, the respondents have blocked the tax credit of
the petitioner vide order dated 20-7-2019. It was submitted that there is no
provision under the State Goods and Services Tax Act or Central Goods
and Services Tax Act which empowers the respondent officers to block the
input tax credit of a supplier.
2. Referring to the order dated 30-7-2019 of provisional attachment of
property under section 83 of the CGST Act as well as the order of provi-
sional attachment of stock of the petitioner, it was submitted that the same
have been passed in relation to the proceedings launched under section
71(1) of the said Acts. Referring to the provisions of section 83 of the CGST
Act, it was pointed out that the same can be invoked during the pendency
of proceedings under sections 62, 63, 64, 67, 73 or 74 of the said Act, howev-
er, there is no power vested in the respondents to invoke the provisions of
section 83 in the proceedings launched under section 71(1) of the said Act. It
was submitted that, therefore, the provisional attachment of the bank ac-
count as well as the stock of the petitioner is without authority of law.
3. It was pointed out that subsequently, the assessment order has been
framed on 16-9-2019, to submit that once the assessment is framed, the at-
tachment under section 83 of the CGST Act would no longer survive.
4. Having regard to the submissions advanced by the Learned Counsel for
the petitioner, issue Notice, returnable on 17th October, 2019. By way of ad
interim relief, the respondents are directed to forthwith release the attach-
ment of the bank account of the petitioner bearing No. 655305600366 main-
tained with the ICICI Bank, Rajkot made vide order dated 20-7-2019 and
unblock the credit of the petitioner of Rs. 24, 30,850/- available in the elec-
tronic credit ledger.
4.1 Direct service is permitted.”
3. The Learned Counsel appearing for the writ applicant pointed out
that by virtue of the ad interim relief granted, the attachment of the Bank account
came to be lifted.
4. However, according to him, the attachment over the goods contin-
ued to operate by virtue of the impugned order passed under Section 83 of the
Act.
5. The short point falling for our consideration is whether the im-
pugned order of attachment of property under Section 83 of the Act could have
been passed on the ground of proceedings instituted under Section 71(1) of the
Act. The plain reading of Section 83 of the Act would indicate that the powers
can be invoked during the pendency of proceedings under Sections 62, 63, 64, 67,
GST LAW TIMES  14th May 2020  105