VIOALTION OF ATTACHMENT OF ORDER UNDER SECTION 83 BY BANK, Goods and Services Tax - GST

[Sadanand Bulbule]

Dear Sirs

Herr is a serious query.

1.The Proper Officer has passed an order of attachment of Bank Account under Section 83 of the GST Acts in respect of a dealer pending investigation of fraudulent tax evasion.The attachment order has been duly served on the Bank Manager. Over a period of time the Proper Officer confirms that, the dealer under attachment has transacted crores of rupees and was allowed to withdraw entire money periodically in cash despite statutory order under Section 83 of the GST Act.

2. On initial enquiry, the Bank authorities are unable to provide any reason or justification or explanation about such withdrawal of money. Facts being so, what are the statutory responsibilities of Bank in such scenario and how the Bank can be held accountable for failure to obey the statutory order passed under the GST Act.

3. Had the Bank obeyed the statutory attachment order honestly, the revenue due ot the Government would have been realised safely on real time basis. By disobeying the attachment order, the Bank has caused loss of revenue due to the Government.

4. Whether FIR can be filed against the particular Bank branch for deliberately discarding the statutory order and misconduct causing loss of huge revenue and abating the fraudulent tax evaders to run away with crores of money. Whether there could be any malafide intention in allowing to withdraw money despite statutory attachment?

5. What are the legal remedies available for the department to recover the tax amount for which attachment order was ordered but it was successfully failed.

6. If such practice continues, the intent and object of the Section 83 would be murdered by the Banks, which is something very serious. Already the depositors have been losing faith in many Banks and recent scams are the proof for that.

Kindly enlighten on this serious issue.

Posts / Replies

[Alkesh Jani]

Shri

If notice is issued under Section 79 of CGST Act, then Bank may be liable to pay tax as defaulter but However, Section 83 can be invoked only during pendency of any proceedings and to assign the reason by Commissioner in writing.

This is my view.

Thanks

[KASTURI SETHI]

I am all praise for you for your patriotism and exemplary courage to highlight such grave lapse on this forum in the interest of nation. . Your heart is bleeding to such huge loss of revenue and non-compliance of the statutory orders. It is abetment in evasion of tax. See Section 132 (L) for imprisonment and imposition of penalty equal to tax evaded.

The department has so many legal weapons to recover Govt. dues.

[Sadanand Bulbule]

Dear Sethi Sir,

My highest salutations for your kind instant valuable guidance Sir and appreciation of my concern. Being a taxman, I have been striving to justify my pension and be relevant to the changing times since my superannuation.
With profound regards. 🙏🙏

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji, Sir, We are sailing in the same boat. Retired life is an other innings. II do consultancy with a purpose to remain busy. f we remain busy in reading and sharing knowledge & experience with others, we shall remain active and our memory will never fade. Knowledge must be shared otherwise it will rust. I like your idea of justifying pension after superannuation very much. In this way we contribute to society.

[Sadanand Bulbule]

So kind of you Sir for fabulous inspiration. 🙏🙏

[KASTURI SETHI]

Dear Sh.Sadanand Bulbule Ji,

Sir, I want to know more about you. Why do you not post your profile in this forum ?

[Sadanand Bulbule]

Very Good Morning Sirji.
Sure Sir.