Page 83 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] AMAZONITE STEEL PVT. LTD. v. UNION OF INDIA 185
sessed by said officer in terms of Section 5(2) ibid - Sections 2(24), 3, 5 and 83
of Central Goods and Services Tax Act, 2017. [paras 7, 37]
Bank account - Provisional attachment of bank account - Continuation
of attachment after expiry of prescribed period - Without passing fresh orders
for attachment - Illegal and clearly in violation of assessee’ rights for carrying
on business under Article 19(1) of Constitution of India and under Article
300A of Constitution of India wherein assessee deprived of its property with-
out authority of law - Authorities directed to pay costs. - Section 83(2) of Central
Goods and Services Tax Act, 2017 is crystal clear that the provisional attachment shall
cease upon expiry of one year. It was therefore incumbent on the authorities to either re-
lease the provisional attachment by informing the bank or by issuing a fresh order of pro-
visional attachment, if the law so allowed. The failure to do the above is nothing short of
being an act of highhandedness. Such actions of the authorities is an obloquy and repre-
hensible. [paras 11, 37]
Bank account - Provisional attachment of bank account - Fresh order
for attachment after expiry of prescribed time - Can be passed upon compli-
ance of necessary formalities - Issuance of fresh order will require fresh review
and assessment of circumstances in hand - Extension of earlier order to be
passed without actually evaluating and analysing requirement of doing so -
Section 83 of Central Goods and Services Tax Act, 2017 read with Rule 159 of
Central Goods and Services Tax Rules, 2017 does not provide for supply of
order of provisional attachment of a bank account to assessee concerned - No
requirement to serve fresh order personally upon assessee - It was made clear
that sufficiency of reasons with respect to the fresh order of provisional at-
tachment under Section 83 ibid not gone into. - Powers conferred under Section 83
are drastic and extraordinary in nature. The powers under this section should not be in-
voked routinely and must be exercised with due caution, circumspection and deliberation.
Section 83 has to be construed literally and strictly. On a perusal of Section 83, it is evi-
dent that Section 83 does not provide for an extension of an order for provisional attach-
ment and any such extension shall be de hors the statute. Section 83 empowers the com-
petent authority to issue an order for provisional attachment of property including bank
accounts if it is of the opinion that such a step is necessary for protecting the interest of
government revenue. It is palpably clear that Section 83(2) permits continuation of a
provisional attachment order for a period of one year from the date of order after which it
ceases to remain in effect. However, there is nothing in the section which indicates that
upon completion of the prescribed period, a fresh order cannot be issued. To say this
would amount to supplying such requirements into the section which would go against
the well-established principles of interpretation of statutes. After the expiry of the time
period, the appropriate authority may be of the opinion that such an attachment is further
required to protect the interest of government revenue, and may therefore, issue a fresh
order upon compliance of the formalities in Section 83(1). Section 83 of the CGST Act,
2017 has to be read with Sections 67 and 74 of the CGST Act, 2017 and Rule 159 of the
CGST Rules, 2017. As is evident from Section 74, the time-limit for issue of show cause
notice is four and half years, while the adjudication is required to be completed within
five years of the particular evasion of tax/fraudulent transaction. Section 83(2) provides
for a period for cessation of the provisional attachment. This provision does not in any
manner prevent the authorities to issue a fresh order of provisional attachment if the re-
quirements under Section 83(1) are met. The period of one year has been provided only to
bring about a balance between the rights of the assessee and the interest of the Revenue.
[paras 28, 31, 32, 33, 34, 35, 37]

GST LAW TIMES  14th May 2020  83