Can a cash credit account be provisionally attached under Section 83 of the CGST/MGST Act? No, the Hon’ble Bombay High Court in Skytech Rolling Mill Pvt. Ltd. v. Joint Commissioner of State Tax, Raigad Division [W.P. No. 1928 of 2025, decided on 10.06.2025 | 2025 (6) TMI 1253] held that a cash credit account is not ‘property’ belonging to the taxpayer, and hence cannot be attached under Section 83. 📌 Brief Facts: The petitioner’s cash credit account with ICICI Bank was provisionally attached under Section 83 of the MGST Act. The department considered it as “bank account/property” of the taxpayer. The petitioner argued it was a credit facility—a liability, not an asset—and relied on earlier precedents disallowing such attachment. ⚖️ Court’s Observation: The Court agreed with the petitioner, clarifying that “bank accounts” under Section 83 refer to deposit accounts, not loan or CC accounts. A cash credit account is a liability owed to the bank, and not “property” of the taxpayer. Therefore, the attachment was without jurisdiction and liable to be quashed. 🖋️ Author’s Comments: 👉 Power under Section 83 should be used judiciously, not as a pressure tactic. 👉 Cash credit accounts are not assets—they cannot be used for recovery. ➡️Practical Pointers 👉 File a structured objection within 7 days highlighting: •Nature of the account (liability vs. asset) •Compliance history •Disputed/unadjudicated liability •Willingness to cooperate/security offer ➡️A clear, factual response makes the attachment difficult to sustain and strengthens judicial challenge. #GSTLitigation #ProvisionalAttachment #CashCredit #Section83 #GSTIndia #BombayHighCourt #TaxpayerRights #GSTLaw #IndirectTax #RiteshArora #GSTCaseLawCompendium #PracticePointers

#trapsfortheunwary / #practicepointers Please please don't buy into the antiquated supposedly lawyerly practice of drafting numbers as both words & numerals. I once saw a discrepancy between the two nearly scuttle a public-public acquisition. delawarelitigation.com/2019/…

Good advice for all LCS teams. #PracticePointers #AnimeLifeHacks #NALCS #EULCS