Point of Law: , time can be extended for a further period of six month. Appropriate order for extension of period of provisional attachment would only be passed upon satisfaction of the criteria listed out. An injunction/stay order passed during pendency of assessment proceedings does not on its own or by deeming fiction extend period stipulated in order. Upon the expiry of the period stipulated in the order demanding provisional attachment, assessee is entitled to encash his money minus any tax due. An extension of provisional attachment without recording any reasons, such order must be taken to be illegal and non est. When assessee has filed an appeal challenging order of assessment within time period prescribed under the provision of the Income-Tax Act, 1961 dealing with appealable orders along with a stay application, Assessing Officer cannot not pass an order of attachment in terms of this provision during pendency of said appeal. When property, which' is subject matter of provisional attachment, is sufficient to satisfy tax liability and safeguard interest of revenue, petitioner can seek release of provisional attachment in respect of other properties and amounts due from debtors and depositors

JUDGMENT :

J.B. PARDIWALA, J.

1. By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs :

“(a) quash and set-aside the impugned orders dated 28.8.2020 (inadvertently mentioned as 28.8.2018) at Annexure-A (Colly) provisionally attaching the CC/Current Bank Account No.066028304000013 held with the AMCO Bank, Current Bank Account No.02372320002872 and Savings Bank Account No.02371000038487 held by the Petitioner with the HDFC Bank Limited;

(b) pending the admission, hearing and final disposal of this petition, direct the Respondent No.2 to lift the attachment over the CC/Current Bank Account No.066028304000013 with the AMCO Bank, Current Bank Account No.02372320002872 and Savings Bank Account No.02371000038487 with the HDFC Bank Limited and permit the Petitioner to operate such bank account;

(c) any other and further relief deemed just and proper be granted in the interest of justice;

(d) to provide for the cost of this petition.”

2. The facts giving rise to this writ-application may be summarised as under :

3. The writ-applicant is a proprietor of a proprietary concern running in the name of M/s. Chechani Trading Company. The concern is engaged in the business of trading of ferrous and non-ferrous metal scrap. The writ-applicant holds a valid registration certificate under the provisions of the CGST Act and the GGST Act respectively.

4. It appears from the materials on record that a spot visit was carried out by the flying squad of the department on 11th August 2020 at the premises of the writ-applicant. The department is prima facie of the view that the purchases made by the writ-applicant from the JSK Metacast and Uttam Metal and Alloys respectively are not genuine.

5. In the course of the search carried out by the department, the registers, documents and books of accounts for the period between 1st July 2017 and 11th August 2020 were collected and taken into possession.

6. It appears that the respondent no.2 passed an order dated 28th August 2020 (Annexure-A collectively to this writ-application) of provisional attachment of cash credit/current bank account and one savings bank account held by the writ-applicant with the HDFC Bank Limited.

7. The impugned order of provisional attachment in the Form GST DRC-22 reads thus :

“FORM GST DRC-22

(See Rule 159(1)]

Dated : 28.08.2020

To,

The Manager,

AMCO Bank, Final Plot No.832,

T.P.Scheme No.10, Raghuvir Textile Mills,

Nr.Gujarat Bottling Co,

Rakhial, Ahmedabad,

Gujarat 380023

Provisional Attachment of Property under section 83

It is to inform that M/s.Chechani Trading Company having principal place of business at 1514, GIDC Phase-3, Vatva, Ahmedabad 382445 bearing registration number as GSTIN: 24AAHPC1431G1ZF, PAN No.AAHPC1431G is a registered taxable person under the CGST Act. Proceedings have been initiated against the aforesaid taxable person under section 67 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-

Saving/current/FD/RD/depository account in your bank having account no.066028304000013.

In order to protect the interests of revenue and in exercise of the powers conferred under section 83 of the Act, I Mohit Agrawal, Additional Commissioner, hereby provisionally attach the aforesaid account.

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 department.”

8. Thus, it appears on plain reading of the order referred to above that as the proceedings under Section 67 of the Act came to be initiated, the Additional Commissioner thought fit to exercise his powers under Section 83 of the Act for the purpose of provisional attachment of the bank accounts referred to above.

9. Being di