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TMI Blog2022 (1) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... NISHA M. THAKORE MR AVINASH PODDAR, ADVOCATE FOR THE PETITIONER. MR DEVANG VYAS, ADDL.SOLICITOR GENERAL OF INDIA WITH MR.UTKARSH R SHARMA, AGP FOR THE RESPONDENT JUDGMENT PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs : (a) To quash and set aside the order for provisional attachment of the bank account vide FORM GST DRC-22 dated 29.11.2021 issued by Respondent No.1 as the same is dehors the provisions of Section 83 of the CGST Act, 2017 and since the attachment of the cash credit account, not being the property of tax payer, is not permissible in law. (b) To quash and set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 83 of the CGST Act, 2017. The law as regards the provisional attachment of a cash credit account is no longer res integra. Way back in the year 2016, in the case of Kaneria Granito Ltd. vs. Assistant Commissioner of Income Tax, Special Civil Application No.14497 of 2014 decided on 27.06.2016, a Coordinate Bench of this Court took the view that a cash credit account cannot be provisionally attached. 3. The cash credit account in the case on hand, could be said to have been opened to enable the writ applicant to borrow the money from the Bank for the purpose of its business. Any money therefore, that the Bank may make available to the assessee would necessarily be in the nature of a loan or a cash credit facility. In either case, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all accounts based on same PAN are required to be attached as per FORM DRC, 22 mandated by CGST Rules, 2017. I also observe that the Hon'ble High Court has not released any other accounts attached in the relied upon case. Hence, I find that the facts of the case are different and the cases are distinguishable. 14. The taxpayer has placed reliance on the judgement in the case of M/s. Vinodkumar Chechani Vs. State of Gujarat wherein Hon'ble Court directed that provisional attachment of cash credit account shall no, longer operate. I observe that in the said case the FORM DRC 22 was issued by the Additional Commissioner and not by the Pr. Commissioner/ Commissioner as required by Section 83, and the cash credit account was specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the respondents nos.1 and 2 respectively. Mr.Vyas would submit that the view taken by the Principal Commissioner, CGST, could be said to be absolutely erroneous and such a thing would never ever occur in future. Mr.Vyas, the learned Additional Solicitor General of India, has always come to the rescue of such irresponsible erring officers and every time he would persuade us to condone the lapse on their part. We expect the officers of the rank of the Principal Commissioner to be more cautious in future. The law is well-settled that a cash credit account of the assessee cannot be provisionally attached in exercise of powers under Section 83 of the CGST Act. In view of the aforesaid, this writ-application succeeds and is her ..... X X X X Extracts X X X X X X X X Extracts X X X X
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