Section 83 read with section 159(2), and the form GST DRC-22 show that a proceeding has to be initiated against a specific taxable person, an opinion has to be formed to protect the interest of Revenue an order of provisional attachment is necessary.
Section 83 of GST CGST ACT lay down the following conditions by which taxable person bank account attached.
- Order should be passed by Commissioner.
- Reason to believe by proper officer, not below the rank of Joint Commissioner that Taxable Person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act;
- any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act.
- Purpose of attached bank account is protecting the interest of the Government revenue.
- Proceeding under Section 62 or 63 or 64 or 67 or 73 or 74 should be pending.
a. S ection 62 provided that where a registered person fails to furnish a return under section 39 or section 45,
b. Section 63 deals with the assessment of unregistered persons.
c. Section 64 is regarding a summary assessment in respect of certain special cases.
d. Section 67 falls in Chapter XIV and refers to the power of inspection, search and seizure.
e. Section 73 is in Chapter XV wherein it deals with the determination of tax not paid or short paid or erroneously refunded or wrongly availed, utilised for any reason other than fraud or any wilful mis-statement made on suppression of facts.
f. Section 74-Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.
In Case of PROEX FASHION PRIVATE LIMITED Versus GOVERNMENT OF INDIA & ORS, Delhi High Court pronounced Judgment in mentioned case that section 83 does not attract where no proceedings under any of the provisions mentioned in Section 83 of the Act were in fact initiated against the Taxable Person.