Reason shall be recorded in writing for attachment:
Reason shall be recorded in writing for attachment for section 83 of CGST Act. In case of Steel Patran rolling mills Vs. Assistant commissioner HC held that:
- For making any attachment u/s 83 f CGST Act the commissioner shall record the reason in writing. The section provide for the attachment of property and bank accounts to protect the interest of revenue.
- In the current case also the bank accounts of company were attached by commissioner. The functioning of company was stopped due to bank account attachment.
- Also the taxpayer was made to deposit a sum. It was also held that itself by depositing the sum it will not become a due in GST.
- The attachment right is given to protect the revenue. It is required to be excercised in case of repeated offenders or fly by night operators.
- In this case the commissioner has failed to record his satisfaction. It is not the fit case for attachment. Also the revenue should balance the interest of both revenue and assessee. Revenue is not supposed to work in a manner to harm the day to day business of taxpayer.
- The power given u/s 83 of CGST Act shall be used carefully as it may harm the business.