The Bombay High Court directed the Authority to withdraw the Provisional Attachment of Bank Account of taxable person’s family members.
The petitioner, Dharmesh Gandhi has sought the quashing of communication issued by the Assistant Commissioner (Anti-Evasion), CGST and Central Excise, Belapur Commissionerate i.e., respondent to the Branch Manager, Kotak Mahindra Bank Ltd.for provisional attachment of property under section 83 of Central Goods and Services Tax Act, 2017.
Mr. Dharam Gandhi, the counsel for the petitioner has made a number of submissions assailing the legality and validity of the provisional attachment and has also relied upon a number of judgments of this Court as well as of other High Courts including Gujarat High Court by filing a compilation.
On the other hand, Mr. J. B. Mishra, counsel for the respondents has referred to the averments made in the reply affidavit filed on behalf of the respondents to contend that provisional attachment is justified and does not warrant interference.
The court found that the nine bank accounts that have been attached by respondent authority, only the 3 accounts belong to the petitioner whereas the other accounts belong to the family members, namely, mother, wife and son.
The division bench of Justice Ujjal Bhuyan and Milind N.Jadhav directed the provincial release of the bank account of the family members of the taxpayers in the light of the decision in case of n Siddhart Mandavia Vs. Union of India, Writ Petition wherein it was held that the bank account of only the taxable person can be provisionally attached under section 83 of the CGST Act and therefore the provisional attachment of bank account of the family members was set aside.
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