Point of Law: The words, "reason to believe" or "in the opinion of do not always lead to the construction that the process of entertaining "reason to believe" or "the opinion" is an altogether subjective to process not lending itself even to a limited scrutiny by the court that such "a reason to believe" or "opinion" was not formed on relevant facts or within the limits or as Lord Radcliffe and Lord Reid called the restraints of the statute as an alternative safeguard to rules of natural justice where the function is administrative.

ORDER :

J.B.PARDIWALA, J.

1. By this writ application under Article 226 of the Constitution of India, the writ applicant, a partnership firm through one of its partners, has prayed for the following reliefs;

“(A) to quash and set aside Form DRC IA dated 24.07.2020 issued by respondent no.4.

(B) to quash and set aside the impugned provisional attachment order, i.e, Form GST DRC-22 for factory premises issued in Form GST DRC 22 dated 27.07.2020 by respondent no.4

(C) to direct the respondents to transfer the proceedings to the CGST department as they had already initiated the same.

(D) pending admission, hearing and till final disposal of this petition, Your Lordship may be pleased to direct the Respondents

(I) To lift the attachment of factory premises;

(II) To stay the operation of Form GST DRC 01A;

(III) Not to take any coercive action against the petitioner.

(E) To issue order(s), direction(s), writ(s) or any other relief(s) as this Hon'ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;

(F) To award Costs of and incidental to this application be paid by the Respondents;

(G) And for this act of kindness, the Petitioner shall, as in duty bound, ever pray.”

2. The facts, in brief, leading to filing of this writ application, may be summarized as under:

2.1 The writ applicant is a partnership firm registered with the GST having GSTIN 24ABCFM4102E1ZZ. The firm is engaged in the business of manufacturing of different types of textile fabrics. It appears that an inquiry has been initiated against the firm by the CGST Department, Surat by issuing summons under Section 70(1) of the Act, 2017 dated 20th September, 2019. It appears that pending the inquiry, the Department has taken two fold action. First an order in Form GST DRC-01A dated 24th July, 2020 has been issued, Annexure-J, Page-39 of this paper-book and secondly, an order of provisional attachment of property under Section 83 of the Act in Form GST DRC-22 has been passed.

2.2 Being dissatisfied with the aforesaid action on the part of the GST Authorities, the writ applicant has come up before this Court with the present writ application.

3. We have heard Mr. Avinash Podar, the learned counsel appearing for the writ applicant and Mr. Chintan Dave, the learned AGP appearing for the State-respondents.

4. We are not inclined to interfere with the order passed in Form GST DRC-01A dated 24th July, 2020, referred to above. However, we are of the view that the order of provisional attachment of the immovable property in the form of the industrial unit under Section 83 of the Act is not sustainable in law. We quote the order passed in Form GST DRC-22 as under;

“FORM GST DRC -22

Reference No. Date 27.07.2020

To

Name:-M/s. Meenakshi Trendz

Addresss:- 272 BF, Near Maruti Dyeing, Pandesara GIDC, 394221

(Bank/Post Office/Financial Institution/Immovable Property registering authority)

Provisional attachment of property under section 83

It is to inform that M/s. (name) having principal place of business at (address) bearing registration number as (GSTIN/ID), PAN is 24ABCFM4102E1ZZ a registered taxable person under the <> Act. Proceedings have been launched against the aforesaid taxable person under section 74(5) of the said Act to determine the tax or any other amount due from the said person. As per information available with the department, it has come to my notice that the said person has a <> account in your << bank/post office/financial institution>> having account no:-

Or Property located at property ID & location- 272 BF, Near Maruti Dyeing, Pandesara GIDC, Surat.

In order to protect the interests of revenue and in exercise of the powers conferred under section 83 of the Act, I D.J. Bamaniya, (name), A-C (4) D 8, Surat (designation). Hereby provisionally attach the aforesaid account/property.

No debit shall be allowed to be made from the said account or any other account operated by the aforesaid person on the same PAN without the prior permission of this dep