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TMI Blog2023 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... chment can be exercised on initiation of any proceedings under Chapter XII, XIV or XV. Since the proceedings were initiated under Section 67 of CGST Act, this procedure falls under Chapter XIV. Hence, even after amendment of Section 83 (1) of the CGST Act w.e.f 01.01.2022, the power of attachment can be exercised on initiation of any proceedings under Chapter XV, which has been done in the present case. In the present case, the show cause notice was issued after initiation of proceedings under Section 67 of the Act and these proceedings falls under Chapter XV and, thus, there is no infirmity in attachment of the bank account of the petitioner, which would be enforced for a period of one year. The petition is devoid of any merits and is dismissed. - HON BLE MS. JUSTICE RITU BAHRI AND HON BLE MR. JUSTICE KULDEEP TIWARI Present:- For the Petitioner : Ms. Radhika Suri, Sr. Advocate assisted by Mr. Abhinav Narang, Advocate. For the Respondents : Mr. Sourabh Goel, Sr. Standing counsel. RITU BAHRI, J. 1. The petitioner-assessee has approached this Court by filing the present writ petition for issuance of writ in the nature of certiorari for quashing order dated 20.01.2023 (P-1) and show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s argued that at the time of search on 08.01.2021 under Section 67 of CGST Act, the proceedings of enquiry initiated under Section 70 of the Act did not conclude. She has further argued that Section 83 (1) of the CGST Act which was amended w.e.f 01.01.2022 stipulates that power of attachment can be exercised on initiation of any proceedings under Chapter XII, XIV or XV. The Commissioner may in order to protect the interest of the Government revenue, can attach provisionally any property including bank account belonging to the taxable person or any person specified in sub-Section (1A) of Section 122. She has argued that for invoking fifth part of Section 83 against any person specified therein, the conditions specified under first part of Section 83 must be fulfilled which has not been done in the present case. 7. She has further argued that proceedings initiated under Section 122 read with Section 127 did not fall under Chapter XII, XIV or XV and hence the attachment of the bank account is against the amended provisions of Section 83 of CGST Act and the impugned order is liable to be set aside. 8. Reference has been made to the judgment of Hon ble the Supreme Court of India in a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy of filing objections to the provisional attachment order, the present petition is not maintainable in view of the judgment of Hon ble the Supreme Court of India in a case of State of Punjab vs. M/s Shiv Enterprises and ors., 2023 Live Law (SC) 56. The present writ petition is premature. 12. After the detailed investigation, the show cause notice dated 11.04.2023 was issued to the petitioner after initiation of proceedings under Section 67 of the Act. Once the proceedings were initiated under Section 67 of the Act, which falls under Chapter XIV of the Act, there is no infirmity in the provisional attachment of the bank account which will remain in force for a period of one year. The show cause notice is pending before the proper officer/adjudicating authority, therefore, in the interest of safeguarding the interest of the Government revenue, it is imperative that the Bank account of the petitioner remains provisionally attached till the adjudication of the case and thereafter, till the realization of the confirmed Government dues. 13. The case of the petitioner is covered under Sub Section (1) of 83. Further as per Rule 159 (5) of CGST Rules, 2017, any person whose property is at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods liable to tax under the Act without having applied for registration or that he supplied or received any goods in contravention of any of the provisions of the Act. From the perusal of show cause notice issued to the petitioner under Section 130, the case alleged against the petitioner is that of wrongful claim of input tax credit. The petitioner or for that matter any registered person shall be entitled to tax credit of input tax on any supply of goods or services, only when he shall is able to show that the tax in respect of such supply has been paid to the Government either in cash or through utilization of input tax credit admissible in respect of the said supply. Needless to reiterate any person can claim input tax credit under the provisions of the 2017 Act only if the same has been actually paid to the Government. Thus, the action of the respondents in initiating proceedings under Section 130 on the basis of show cause notice dated: 14.09.2021 cannot be sustained Apart from the fact that the aforesaid is factually incorrect, even otherwise, it was premature for the High Court to opine anything on whether there was any evasion of the tax or not. The same was to be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and State Legislatures for recovery of such dues are code unto themselves inasmuch as they not only contain comprehensive procedure for recovery of the dues but also envisage constitution of quasi judicial bodies for redressal of the grievance of any aggrieved person. Therefore, in all such cases, High Court must insist that before availing remedy under Article 226 of the Constitution, a person must exhaust the remedies available under the relevant statute. 16. Reference at this stage can further be made to the provisions of Section 83 which reads as under:- Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub- section (1A) of section 122, in such manner as may be prescribed. 17. In the present case, the show cause notice was issued after initiation of proceedings under Section 67 of the Act and these proceedings falls under Chapter XV and, thus, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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