2026-VIL-1197-BOM
  1. Home
  2. 2026-VIL-1197-BOM

SGST High Court Cases

GST - Provisional attachment of bank accounts under Section 83 of CGST Act - Opinion of Commissioner and tangible material – Respondent-Dept attached the current and escrow bank accounts of the Petitioner, a payment aggregator authorised by the RBI, under Section 83 on the allegation that the Petitioner may be playing a significant role in evasion of GST by an organised online money gaming syndicate, did not cooperate in the investigation - Whether the provisional attachment of the bank accounts of petitioner under Section 83 is without jurisdiction and contrary to the mandate of the Supreme Court in Radha Krishan Industries case - HELD - The power of provisional attachment is draconian and the conditions prescribed by the statute must be strictly fulfilled. The opinion of the Commissioner must be formed on tangible material bearing on the necessity of attachment to protect the interest of the Government revenue and the orders cannot be justified through affidavits-in-reply - The impugned orders contain only vague statements which do not show any GST liability of the Petitioner, and the entire case relates to money laundering by unnamed third parties. The orders do not mention the specific transactions, the entities involved, the manner of evasion or the role of the Petitioner, and the alleged non-existent merchants are not disclosed even in the affidavit-in-reply - Section 83 permits attachment of property belonging to the taxable person or a person specified in Section 122(1A), but the order does not record that the Petitioner is such a person. The monies in the escrow account are impressed with a trust, do not belong to the Petitioner and cannot be attached under Section 83. The Petitioner dealing with government entities is not a fly by night operator. The account of a payment aggregator which is not held liable on any transaction cannot be attached to recover liabilities that may become due in the hands of third parties. There was non-application of mind and the opinion is based completely on suspicion without cogent and credible material - The provisional attachment is illegal as the tests in Radha Krishan Industries are not satisfied. The petition is allowed by quashing the attachment orders and the partial defreezing orders to the extent they continue the attachment – The writ petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?