2022 (4) TMI 1027 - HC - GST

Provisional attachment of the bank accounts of the petitioner - case of petitioner is that mandatory provisions of Rule 159 of CG ST Rules, 2017 have not been followed at all - Section 83 of the CGST Act, 2017 - HELD THAT - Put up as a fresh case before the appropriate Bench on 27.04.2022 .

Summary

Issues:
Challenge to the provisional attachment of bank accounts under Section 83 of the CGST Act, 2017 without following the mandatory provisions of Rule 159 of the CG & ST Rules, 2017.

Analysis:

Issue 1: Provisional Attachment under Section 83 of the CGST Act, 2017
The petitioner sought a writ of certiorari to quash the order dated 22.10.2021 passed by the Commissioner of Central Goods and Service Tax Act, Ghaziabad, directing the provisional attachment of the bank accounts. The petitioner contended that at the time of attachment, no proceedings under specified sections were pending, rendering the attachment without jurisdiction. The petitioner argued that the mandatory provisions of Rule 159 of the CG & ST Rules, 2017 were not adhered to, making the attachment illegal. This issue revolves around the interpretation and application of Section 83 of the CGST Act concerning provisional attachment.

Issue 2: Compliance with Rule 159 of the CG & ST Rules, 2017
The petitioner's counsel highlighted the non-compliance with Rule 159 of the CG & ST Rules, 2017, which outlines the procedure for the provisional attachment of property, including bank accounts. The rule mandates the passing of an order in a specified form, notification to relevant authorities, provisions for release of perishable or hazardous property upon payment, and the opportunity for the affected party to file objections. The petitioner argued that the failure to follow these procedures rendered the attachment illegal and without jurisdiction. This issue delves into the procedural requirements and safeguards provided under Rule 159 for the attachment of property under the CGST Act.

Conclusion:
The judgment of the Allahabad High Court involves a detailed analysis of the legality and jurisdiction of the provisional attachment of bank accounts under the CGST Act, 2017. The court will further examine the compliance with Rule 159 of the CG & ST Rules, 2017 to determine the validity of the attachment order. The case is scheduled for further proceedings, allowing the respondent to file a counter affidavit before the appropriate Bench. The outcome of this case will likely provide clarity on the procedural requirements and safeguards governing provisional attachments under the GST laws.