The Delhi High Court has permitted GMG Tradelink Pvt. Ltd. to file fresh objections against the provisional attachment of its bank accounts ordered by the Directorate General of GST Intelligence (DGGI).
The bench of Justice Prathiba M. Singh and Justice Shail Jain clarified that the Principal Additional Director General of DGGI is duly empowered to exercise powers under Section 83 of the CGST Act, relying on Notification No. 14/2017 dated 1 July 2017.
Section 83 allows provisional attachment to safeguard government revenue during investigation proceedings. Such attachments remain valid for one year, after which the authority must review continuation.
The company had approached the Court challenging the order dated 6 March 2025, through which its current accounts held with ICICI Bank, Bhiwani Mandi, were provisionally attached.
The petitioner argued that the attachment order was passed by an authority not competent under Section 83 of the CGST Act. The company had already raised objections before the Commissioner, DGGI, under Rule 159(5), highlighting the issue of jurisdiction.
The government counsel produced Notification No. 14/2017, showing that the Principal Additional Director General, DGGI, is equivalent in rank to a Principal Commissioner, thereby competent to exercise provisional attachment powers under Section 83.
The court held that the jurisdictional objection does not survive, in view of the 2017 notification. However, the petitioner is allowed to file fresh objections regarding the attachment. Upon filing, DGGI must communicate reasons for the attachment within two weeks.
The Court disposed of the petition while keeping all legal remedies open for the company, based on the outcome of the objection process.
Case Details
Case Title: GMG Tradelink Pvt. Ltd. Versus DGGI
Case No.: W.P.(C) 16259/2025 & CM APPL. 66504/2025
Date: 27th October, 2025
Counsel For Petitioner: Yatharth Rohila
Counsel For Respondent: Harpreet Singh, Sr. Standing Counsel
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