| COURT: | Bombay High Court |
| CORAM: | M. S. Karnik J, Nitin Jamdar J |
| SECTION(S): | GST Act |
| GENRE: | Domestic Tax |
| CATCH WORDS: | attachment order, coercive recovery, garnishee notices |
| COUNSEL: | Anjali Jha Manish |
| DATE: | January 17, 2020 (Date of pronouncement) |
| DATE: | January 25, 2020 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 83 CGST Act: Power to provisionally attach bank accounts is a drastic power. Considering the consequences that ensue from provisional attachment of bank accounts, the power is not to be routinely exercised. S. 83 confers power on the authorities to provisionally attach bank accounts to safeguard Govt revenue but the same is within well-defined ambit. Only upon contingencies provided therein that the power u/s 83 can be exercised. This power is to be used in only limited circumstances and it is not an omnibus power. If proceedings are launched against one taxable person, bank account of another taxable person cannot be provisionally attached merely based on the summons issued u/s 70 to him. | |
Power to provisionally attach bank accounts is a drastic power. Considering the consequences that ensue from provisional attachment of bank accounts, the Courts have repeatedly emphasized that this power is not to be routinely exercised. Under Section 83, the legislature has no doubt conferred power on the authorities to provisionally attach bank accounts to safeguard government revenue, but the same is within well-defined ambit. Only upon contingencies provided therein that the power under section 83 can be exercised. This power is to be used in only limited circumstances and it is not an omnibus power
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