Petitioner | Proex Fashion Pvt. Ltd. |
Respondent | Government of India & Others |
Decision By | Delhi High Court |
Date Of Order Or Judgement | 6-January-2021
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Citation No. | W.P. (C) No. : 11245 of 2020 and CM APPL. 35053 of 2020 2021 (1) GSTPanacea 13 HC Delhi |
Hon’ble Judge | Justice Prateek Jalan |
Decision | In Favour of Assessee |
No Proceedings Initiated U/S 83-Power to attach bank account must be exercised only in strict compliance with the statutory power, and can not be exercised in situations which are not expressly contemplated by Sec. 83.
No Proceedings Initiated U/S 83-Fact of the Case
The petitioner challenged communication by which their bank account is attached u/s 83 of GST Act pursuant to proceedings initiated against them u/s 71.
The petitioner submitted that it can not be a basis for attaching their bank account.
Argument Before Court
Petitioner’s Contention
No Proceedings Initiated U/S 83-The contention of the petitioner, is that the respondent authorities have taken action under Section 83 of the Act, pursuant to proceedings initiated under Section 71 of the Act, whereas Section 83 of the Act, can not be invoked in such a situation.
Respondent’s Argument
No Proceedings Initiated U/S 83-Respondent stated that proceedings were initiated against the petitioner pursuant to a communication from the Directorate General of Analytics and Risk Management (DGARM).
The petitioner was declared as a ‘risky exporter’, and an attempt was made to elicit certain information and documents from the petitioner.
However, according to respondent, several communications addressed to the petitioner at its registered office were returned undelivered.
Therefore, Proceedings under Section 71 of the Act were initiated against the petitioner, and the attachment of the bank account under Section 83 of the Act is pursuant to those proceedings.
Delhi High Court Held
No Proceedings Initiated U/S 83-The Hon’ble High Court is of the view that the impugned order can not be sustained.
Action u/s 83 can be taken during pendency of proceedings u/s 62, 63, 64, 67, 73 or 74.
The power to attach bank account must be exercised only in strict compliance with the statutory power, and can not be exercised in situations which are not expressly contemplated by Sec. 83.
In the present case, the admitted position is that no proceedings under any of the sections mentioned in Sec. 83 were initiated against petitioner.
Therefore, the impugned order is ultravires, and is hereby quashed.
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