M/S Selection Trading Co. vs. Principal Commissioner Of Goods And Service Tax East Delhi & Anr.
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The petitioner, M/s Selection Trading Co., challenged a provisional attachment order issued under Section 83 of the Central Goods and Services Tax Act, 2017. The respondents, Principal Commissioner of Goods and Service Tax East Delhi & Anr., submitted that a subsequent provisional attachment order was issued after May 12, 2020. However, it was undisputed that this subsequent order would also not survive beyond one year from its issuance. The Court noted the central challenge raised in its previous order of November 6, 2024.
Held
The Court allowed the writ petition and quashed the provisional attachment order. The reasoning was based on the undisputed submission by the respondents that the provisional attachment order, even if a subsequent one was issued after May 12, 2020, would not survive beyond one year. Therefore, the attachment had lapsed by operation of law. The Court directed that the concerned bank/financial institutions proceed accordingly to defreeze the accounts. This decision was made without prejudice to the respondents' right to pursue proceedings under Section 73 and Section 74 of the CGST Act, in accordance with law.
Key Issues
1. Whether a provisional attachment order issued under Section 83 of the CGST Act, 2017, which has exceeded its statutory period of validity, remains enforceable? The petitioner argued that the attachment order, having expired by operation of law after one year, should be quashed. The respondents conceded that the subsequent provisional attachment order, issued after May 12, 2020, would not survive beyond one year. The Court had to decide if the continued existence of an expired attachment order warranted its quashing.
Sections Cited
Section 83, Section 73, Section 74
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Cause title — parties, addresses and appearances
O R D E R %
2024
We take note of the central challenge which stood raised and stands captured in our order of 06 November 2024. 2. Ms. Monica Benjamin, learned counsel who has entered appearance on behalf of the respondents, submits that subsequent to 12 May 2020 another provisional attachment order under Section 83 of the Central Goods and Services Tax Act, 2017 [“CGST Act”] had come to be issued. However, and undisputedly even that order would not survive post the passing of the period of one year.
In view of the aforesaid, we allow the instant writ petition and quash the provisional attachment order. The concerned bank/financial institutions would have to proceed accordingly. The account shall stand defreezed.
The aforesaid would be without prejudice to the right of the 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 27/11/2024 at 12:24:06
respondents to take the proceedings referable to Section 73 and 74 of the CGST Act further, in accordance with law.
The present writ petition is disposed of in terms of the above.
YASHWANT VARMA, J.
DHARMESH SHARMA, J. NOVEMBER 22, 2024 sp
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 27/11/2024 at 12:24:06
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.