Akash Traders vs. Commissioenr CGST And Cx Delhi And Anr.
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The petitioner, Akash Traders, filed a writ petition before the Delhi High Court challenging a provisional attachment order dated January 5, 2022, made by the Commissioner CGST and CX Delhi and another authority, purportedly under Section 83 of the Central Goods and Services Tax Act, 2017. During the pendency of this writ petition, a fresh order for provisional attachment of the petitioner's bank account was passed on October 18, 2023. The petitioner contended that these attachment orders were illegal. The respondents are the Commissioner CGST and CX Delhi and another authority.
Held
The Court held that an order of provisional attachment made under Section 83 of the Central Goods and Services Tax Act, 2017, is operative only for twelve months. Consequently, neither the order dated January 5, 2022, nor the subsequent order dated October 18, 2023, subsist in law as their period of operation would have expired. The Court declared that these orders are no longer valid. The Court directed the concerned financial institution to proceed in light of this declaration, subject to any other legal impediment. The writ petition was disposed of on these terms. No other issues were expressly left undecided.
Key Issues
1. Whether the provisional attachment orders dated January 5, 2022, and October 18, 2023, passed under Section 83 of the Central Goods and Services Tax Act, 2017, are still operative in law. Petitioner's Contention: The petitioner argued that the provisional attachment orders were illegal and subsisting. They relied on the principle that such orders have a limited period of operation. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or the respondents. However, the Court's decision implies that the revenue's position, if any, was not persuasive regarding the continued validity of the orders.
Sections Cited
Section 83
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Cause title — parties, addresses and appearances
O R D E R %
2025
The writ petitioner had originally approached this Court aggrieved by the provisional attachment made by the respondents on 05 January 2022 in purported exercise of powers conferred by Section 83 of the Central Goods and Services Tax Act, 2017 [„Act‟].
During the pendency of the present writ petition, a fresh order dated 18 October 2023 appears to have also been passed for the provisional attachment of its bank account.
Undisputedly, an order of provisional attachment made under Section 83 of the Act would be operative only for twelve months. In view of the above, it is manifest that neither the order of 05 January 2022 nor 18 October 2023 subsist in law today.
We, consequently, render the aforesaid declaration and direct the concerned financial institution to proceed in light of the above forthwith subject to there being no other legal impediment. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/07/2025 at 00:05:50
The writ petition shall stand disposed of on the above terms.
YASHWANT VARMA, J.
HARISH VAIDYANATHAN SHANKAR, J. FEBRUARY 11, 2025/v This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 02/07/2025 at 00:05:50
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.