GST: Order of Provisional Attachment of Cash Credit Account of Taxpayer Quashed by Gujarat High Court

We have heard Mr. Poddar, the learned counsel appearing for the writ-applicant, and Mr.Devang Vyas, the learned Additional Solicitor General of India, assisted by Mr.Utkarsh Sharma, the learned standing counsel appearing 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 hereby allowed. The order of provisional attachment of the cash credit account of the writ-applicant is hereby quashed and set-aside.

Mr.Vyas made a request that paragraph-6 of the order passed by this Court dated 5th January 2022 be expunged. Having regard to the fervent request made by Mr.Vyas, we expunge the paragraph-6 from the order passed by this Court dated 5th January 2022 with the hope and trust that the officers shall not act in an arbitrary manner and should respect the orders which are passed by this Court.

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