2021 (8) TMI 891 - HC - GST

Provisional attachment of property - Section 83 of the GST Act - HELD THAT - It is needless to say that the powers under Section 83 of the GST Act with regard to provisional attachment could be exercised only during pendency of proceedings either under sections 62 or Section 63 or Section 64 or Section 67 or Section 73 or Section 74. Hence, prima-facie the exercise of powers under Section 83 of the GST Act appears to be arbitrary and dehors the said provision. Under the circumstances respondent No. 4 is called upon to state on affidavit as to under what circumstances the impugned order of attachment was passed. Put up on 02.09.2021 - In the mean time, the respondent No. 4 is directed to lift the provisional attachment forthwith, if not done so far.

Summary

The Gujarat High Court found that the provisional attachment of a petitioner's property under Section 83 of the GST Act was arbitrary as no proceedings were pending under relevant sections. The court directed respondent No. 4 to explain the circumstances of the attachment and ordered the provisional attachment to be lifted immediately. Case to be reviewed on 02.09.2021.