Mere recording of reasons in the note sheet by department is not sufficient to attach bank accounts of taxpayer.

Proceedings u/s 74 of CGST Act starts with issuance and service of notice. It has been admitted by revenue that no notice u/s 74 has yet been issued. Thus, as on the date of attachment order, there was no notice u/s 74 of CGST Act. Consequently, the attachment order itself was without jurisdiction.

Facts:

This writ petition has been filed praying for quashing order passed by the revenue for provisional attachment of the bank accounts of the petitioner.

Section 83 of the CGST Act, 2017

Provisional attachment to protect revenue in certain cases. -

(1) Where, during the pendency of any proceedings under Section 62 or Section 63 or Section 64 or Section 67 or Section 73 or Section 74, 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 in such manner as may be prescribed....

High Court required the revenue to file an affidavit as to whether any proceedings under the provisions referred in Section 83 of the CGST Act is pending? And in personal affidavit before this court, the revenue has stated as under:-

“That in this personal affidavit, the answering deponent again reiterates the fact that Show Cause Notice have not been issued till date but there was reasons to believe for provisional attachment U/S. 83 of the CGST Act, 2017 that is why Note Sheet showing reasons to believe, has already annexed as Annexure No.4 to the personal affidavit.”

Held:

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