Whether GST Provisional Attachment Order Loses Validity After One Year?

GST Provisional Attachment Order

Case Title

M/S Pashupati Properties Estate Pvt Ltd Vs Commissioner of Central Taxes GST Delhi

Court

Delhi High Court

Honorable Judges

Justices Manmohan and Justices Sudhir Kumar Jain

Citation

2022 (3) GSTPanacea 300 HC Delhi

W.P.(C) 3624/2022 & C.M.Nos.10740-10741/2022

Judgement Date

08-March-2022

Council for Petitioner

Mr.Harsh Sethi, Anant Nigam and Ms.Saruapriya Makkar

Council for Respondent

Mr.Harpreet Singh and Ms.Suhani Mathur

In favour of

Petitioner

Section

Section 83 of the CGST Act, 2017

The Delhi High Court, Bench of Justices Manmohan and Sudhir Kumar Jain, held Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from today.

FACTS OF THE CASE

Brief facts of the case are that present writ petition has been filed challenging the letter dated 07th December, 2020 issued under Section 83 of the CGST Act, 2017 whereby the Respondent has directed the Bankers of the Petitioner to provisionally attach immovable property in the name of the Petitioner. Petitioner also seeks directions to the Respondent to release/de-freeze the immovable property of the Petitioner. Learned standing counsel for the Respondent stated that after December, 2020, no fresh attachment order has been issued. He further clarified that no show cause notice under Section 74 of the CGST Act has been issued to the Petitioner till date.

GST Provisional Attachment Order

COURT HELD

The Court observed that “According to Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of a period of one year from the date the order was passed under Section 83(1) of the CGST Act.” In view of facts and circumstances, court held that the impugned provisional attachment order/letter is no longer effective. Accordingly, the Court directed the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from today.

GST Provisional Attachment Order

ANALYSIS OF THE JUDGEMENT

By noticing the above order we analyse that according to Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of a period of one year from the date the order was passed

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M/S Pashupati Properties Estate Pvt Ltd

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Delhi High Court