AI Overview...
-
Reason to Believe - Under Section 67 of the GST Act, the initiation of proceedings like provisional attachment or assessment must be supported by tangible materials demonstrating a reason to believe. Courts have consistently emphasized that such belief should not be based on vague or mechanical grounds but must be rooted in specific, credible materials or evidence. For instance, in several judgments (e.g., sources ANJANI IMPEX VS STATE OF GUJARAT - Gujarat, KHUSHI SAREES VS STATE OF GUJARAT - Gujarat, MEENAKSHI TRENDZ THROUGH ITS PARTNER RATAN KUMAR SARAF VS STATE OF GUJARAT - Gujarat, Vinodkumar Murlidhar Chechani Proprietor of M/s Chechani Trading Co. VS State of Gujarat - Gujarat, Enprocon Enterprise Ltd. VS Assistant Commissioner of State Tax - Gujarat), it is highlighted that the authorities' belief must be substantiated with concrete materials to justify actions like provisional attachment under Section 83 of the CGST Act, 2017.
-
Supporting Materials Requirement - The courts have observed that actions taken under Section 83, including provisional attachment, are not justified if they lack tangible evidence or are based on arbitrary or mechanical exercises of power. For example, in sources Vinodkumar Murlidhar Chechani Proprietor of M/s Chechani Trading Co. VS State of Gujarat - Gujarat, Soraza Recycling Private Limited vs Union Of India - Allahabad, and JAY AMBEY FILAMENT PVT. LTD. VS UNION OF INDIA - Gujarat, the courts have quashed orders of attachment where authorities failed to produce sufficient reasons or materials to substantiate their belief.
-
Judicial Scrutiny - The Supreme Court and High Courts have underscored the necessity for authorities to articulate clear, specific reasons supported by materials when invoking powers under Section 67 or 83. Orders lacking such support are deemed arbitrary and violate principles of natural justice. As seen in sources ANJANI IMPEX VS STATE OF GUJARAT - Gujarat, JAY AMBEY FILAMENT PVT. LTD. VS UNION OF INDIA - Gujarat, and Soraza Recycling Private Limited vs Union Of India - Allahabad, the courts have invalidated orders that were based on vague or unsubstantiated grounds.
-
Analysis and Conclusion - The overarching principle is that reason to believe under Section 67 of the GST Act must be supported by tangible, credible materials. Orders based solely on mechanical or vague grounds are liable to be challenged and set aside. Proper documentation, specific evidence, and articulate reasons are essential to justify the exercise of powers in GST proceedings, ensuring adherence to principles of fairness and legality. This approach aligns with judicial expectations for transparency and accountability in administrative actions under GST law.
Search Results for "Reason to Believe under Section 67 of Gst Act Need be Supported by Materials"
2020 0 Supreme(Guj) 794 • India - Gujarat
VIKRAM NATH, J.B.PARDIWALA
Constitution of India - Article 226 - Companies Act, 1956 - Section 237 – Provisional attachment to protect ... 83 of Act in Form GST DRC-22 has been passed - Being dissatisfied with aforesaid action on part of GST Authorities, writ applicant ... 70(1) of Act, 2017 - It appears that pending inquiry, Department has taken two fold action - First an order in Form GST DRC-01A ... The Supreme Court while expressly referring to the expressions such as "reason#HL_E....
2020 0 Supreme(Guj) 795 • India - Gujarat
VIKRAM NATH, J.B.PARDIWALA
arrived at by the authority concerned for the purpose of passing an order of provisional attachment under Section 83 of the Act, ... 83 of Act in Form GST DRC-22 has been passed - Being dissatisfied with the aforesaid action on part of GST Authorities, writ applicant ... residential premises issued - Provisional attachment to protect revenue in certain cases - Power of provisional attachment under Section ... The Supreme Court while expressly referring to the expressions such as "#HL_S....
2020 0 Supreme(Guj) 796 • India - Gujarat
VIKRAM NATH, J.B.PARDIWALA
arrived at by authority concerned for purpose of passing an order of provisional attachment under Section 83 of Act, then such action ... 83 of Act in Form GST DRC-22 has been passed - Being dissatisfied with aforesaid action on part of GST Authorities, writ applicant ... has been issued, Annexure-J, Page-39 of this paper-book and secondly, an order of provisional attachment of property under Section ... The Supreme Court while expressly referring to the expressions such as "....
2020 0 Supreme(Guj) 810 • India - Gujarat
VIKRAM NATH, J.B.PARDIWALA
Facts of the Case: Whether an honest and reasonable person can base his reasonable belief upon such materials ... appearing for the respondents very fairly submitted that not only the impugned order of provisional attachment is bereft of any reason ... India, Article 226 – Attachment of property – Order of provisional attachment of the five bank accounts of the writ applicant under Section ... The Supreme Court while expressly referring to the expressions such as "reason to believe", "in the opinion” of....
2025 Supreme(Online)(Mad) 19795 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR.JUSTICE MOHAMMED SHAFFIQ, J
of provisional attachment under Section 83 of the CGST Act, 2017 - The court found that the order lacked tangible material and reasons ... under Section 83 of the Act. ... (A) Central Goods and Services Tax Act, 2017 - Section 83 - Provisional attachment of property - Writ petition challenging the order ... (as the learned Chief Justice then was) while considering the expression “reason to believe” in Sec....
2021 0 Supreme(Guj) 64 • India - Gujarat
J.B.PARDIWALA, ILESH J.VORA
reason that can be attributed is the mechanical exercise of power under Section 83 of Act. ... 67 of Act are initiated, an order of provisional attachment of bank accounts under Section 83 of the Act would follow - This mechanical ... are not less than ten matters on the subject of Section 83 of Act in cause-list. ... We are of the view that the construction placed on the expression "reason to believe#HL_....
2025 0 Supreme(All) 3488 • India - IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Shekhar B.Saraf, Praveen Kumar Giri
The attachment was based on uninitiated proceedings under Section 74 of the Act. ... Lack of reason in this case rendered the action arbitrary and illegal. ... (A) Central Goods and Services Tax Act, 2017 - Section 83 - Provisional attachment of property - Writ petition challenged the provisional ... (as the learned Chief Justice then was) while considering the expression “reason to believe” in Section 147 of the Income Tax Act, 196....
2020 0 Supreme(Guj) 903 • India - Gujarat
VIKRAM NATH, J.B.PARDIWALA
CGST Act - Section 74(1) – Constitution of India, 1950 - Article 226 - Assessment Order - Quashing and Setting ... receipt of this order and take an appropriate decision whether any case has been made out for issue of show-cause notice under Section ... 74 of the Act - We do not deem fit and reasonable to pass an order in exercise of our writ jurisdiction directing the respondents ... The Supreme Court while expressly referring to the expressions such as "reason to believe", "in the op....
2021 0 Supreme(All) 538 • India - Allahabad
MAHESH CHANDRA TRIPATHI
Warehouse (Development and Regulation) Act, 2007 - Section 35 - Rule 10 of the erstwhile Central Excise ... appellate order was appealable which clearly reflects that said action is contrary to procedures contained therein order must be supported ... by reasons but unfortunately revisional authority/Commissioner did not choose to give reasons in support of order passed by him- ... Rule 86A undoubtedly could be said to have conferred drastic powers upon the proper officers if they have reason#H....
2020 0 Supreme(Guj) 167 • India - Gujarat
J.B.PARDIWALA, BHARGAV D.KARIA
67 of the CGST Act, 2017. ... 67 of the CGST Act, 2017. ... It also appears that the proceedings under Section 73 of the GGST Act, 2017, have been initiated against the writ applicant. ... The Supreme Court while expressly referring to the expressions such as “reason to believe”, “in the opinion” of observed : “Therefore, the words, “reason to believe” or “in the opinion of do not always lead to the construction th....
Filter by Legal Phrase
