The Tax Publishers

GST--Provisional Attachment

Provisional Attachment to Protect Revenue--Implication of Amendment Made by Finance Act, 2021

Vineet Tiwari

The present write-up aims at discussing implications of amendment made by the Finance Act, 2021 in section 83 of the Central Goods and Services Tax Act, 2017 relating to provisional attachment to protect revenue in certain cases.

1. Provisions applicable upto 31-12-2021

Upto 31-12-2021, sub-section (1) of section 83 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") read as under:

"(1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed."

The key characteristics of the above provision were as under:

(i) There is pendency of proceedings under section 62 (i.e. best-judgment assessment) or section 63 (i.e. assessment of unregistered person) or section 64 (i.e. summary assessment) or section 67 (i.e. inspection, search and seizure) or section 73 (i.e. demand and recovery in bona fide cases) or section 74 (i.e. demand and recovery in mala fide cases);