The Delhi High Court has held that the provisional attachment made with reference to powers conferred by Section 83 of the Central Goods and Service Tax Act, 2017 cannot operate beyond a period of twelve months.
The bench of Justices Yashwant Varma and Ravinder Dudeja found that since the one-year limitation period had lapsed, the attachment was no longer valid.
The writ petitioner has challenged the communication dated 03 April, 2023 pursuant to which the GST department has issued debit freeze orders.
As per Section 83 of the Central Goods and Service Tax Act, 2017 where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.] Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).
The court held that the order of attachment cannot continue in law.
Case Details
Case Title: Glacier Merchants Versus Principal Commissioner Of Goods And Service Tax & Anr.
Case No.: W.P.(C) 2337/2025
Date: 24/02/2025
Counsel For Petitioner: Mayank Gupta
Counsel For Respondent: Atul Tripathi
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