Blog No. 7: Provisional Attachment / Attachment of Bank Account

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Hon’ble Bombay High Court in the case of Siddharth Mandavia Versus UOI in Writ Petition (L) No. 2901 of 2020 held as under:

  1. DGGSTI Authorities cannot suspend or cancel the Import Export Code (IEC) of the importer.
  2. The attachment of bank account can only be done for taxable person. In case there is no averment that money has been diverted into joint account maintained with family members or in the account of wife or children, the attachment of said accounts cannot be done.
  3. The authorities should balance the interest of businessman and interest of revenue. The business should continue and must not stop.
  4. Being provisional, such attachment is required to be reviewed periodically by the Commissioner. Such suo-motu review is implicit in rule 159(6) which empowers the Commissioner to release the property provisionally attached before the outer limit of one year if he is satisfied that such attachment of property is no longer required.

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