Bombay HC quashes Provisional Attachment passed w/o Written Order [Read Order]

Bombay High Court Requires Written Orders for Provisional Attachment to Safeguard Revenue

In a recent case before Bombay High Court the petition was allowed in absence of written reasoning mandated by Section 83(1) with respect to provisional attachment proceedings. The petitioner,Global Tabacc Legacy, through its counsel seeked to delete the Respondent 4 from the array of respondents, which was also permitted at the risk and consequences of the petitioner. Join the Future of Finance: Live Online Training in Foreign Exchange Management The petitioner questioned the order exercising powers under Section 83 of the Central Goods and Services Tax Act, 2017, order of provisional attachment of the petitioner was passed by the respondent No.2. Advocate Sujay Kantawala.Petitioner’s counsel argued that the impugned order does not reflect the Commissioner’s opinion. Advocate Bhattad, the counsel for the Respondents, Union of India, Through the Secretary, Ministry of Finance, Department of Revenue and others, produced a copy of the original file before the bench drawing attention to note 5, which was a document indicating reasons for the Commissioner forming such opinion. The counsel also submitted that Section 83(1) of the Act should be mandatorily followed which weighed with the commissioner form an opinion, which is necessary to protect  the interest of the Government of revenue. Join the Future of Finance: Live Online Training in Foreign Exchange Management The division bench of Bombay High Court comprising Justice M.S.Jawalkar and Justice Avinash G. Gharote observed that, in absence of reasons for such opinion the impugned order can’t be sustained and the same was quashed and set aside, and the matter was remitted back to the Commissioner to record his reasons in writing. The petition was allowed on the aforesaid terms.

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