GST Provisional Attachment Order Not Valid After Expiry Of 1 Year: Delhi High Court
The Delhi High Court bench of Justice Manmohan and Justice Sudhir Kumar Jain has held that 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.The petitioner/assessee challenged the letter issued under Section 83 of the CGST Act, 2017 by which the...
The Delhi High Court bench of Justice Manmohan and Justice Sudhir Kumar Jain has held that 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.
The petitioner/assessee challenged the letter issued under Section 83 of the CGST Act, 2017 by which the respondent/department had directed the bankers of the petitioner to provisionally attach immovable property in the name of the petitioner.
The petitioner had prayed for the directions to release/de-freeze the immovable property of the petitioner that was provisionally attached.
Counsel for the respondent submitted that after December 1, 2020, no fresh attachment order was issued. He further clarified that no show cause notice under Section 74 of the CGST Act has been issued to the petitioner till date.
The court noted that after the issuance of the letter dated December 7, 2020, no fresh attachment order on Form GST DRC-22 was issued.
The court observed that the provisional attachment letter is no longer effective and directed the department to de-freeze the bank accounts and release the immovable properties of the petitioner within three days.
Case Title: M/s Pashupati Properties Estate Private Limited Versus Commissioner of Central Taxes | W.P.(C) 3624/2022 & C.M.Nos.10740-10741/2022
Citation: 2022 LiveLaw (Del) 231
Dated: 08.03.2022
Counsel For Petitioner: Advocate Harsh Sethi with Advocate Anant Nigam and Advocate Saruapriya Makkar
Counsel For Respondent: Advocate Harpreet Singh with Advocate Suhani Mathur