M/S Sumer Export vs. Principal Commissioner Of Goods And Service Tax East Delhi & Anr.
Facts
The petitioner, M/s Sumer Export, filed a writ petition before the Delhi High Court seeking a direction to de-freeze its bank account. The bank account had been provisionally attached by the Principal Commissioner of Goods and Services Tax, East Delhi (respondent no.1) on May 14, 2020, through a communication to the United Bank of India (respondent no.2). The petitioner contended that this attachment order was no longer operative. The amount in dispute is not specified. The procedural history involves the issuance of a communication for provisional attachment and the subsequent filing of the writ petition challenging its continued effect.
Held
The Court held that the petitioner's contention was merited. It found that the communication dated May 14, 2020, which provisionally attached the petitioner's bank account under Section 83(1) of the CGST Act, was no longer operative. The Court reasoned that Section 83(2) of the CGST Act explicitly states that any order passed under Section 83(1) ceases to be operative after the expiry of one year from the date of the said order. Therefore, the attachment order, issued on May 14, 2020, had expired by May 14, 2021. The Court directed respondent no.2 (United Bank of India) not to interdict the operation of the petitioner's bank account based on the communication dated May 14, 2020. The Court clarified that this order was confined to the said letter and would not affect any other subsisting order. No issue was expressly left undecided.
Key Issues
1. Whether the provisional attachment of the petitioner's bank account, ordered on May 14, 2020, under Section 83(1) of the CGST Act, 2017, remains operative after the expiry of one year from the date of the order, as per Section 83(2) of the CGST Act, 2017? The petitioner argued that the order of attachment dated May 14, 2020, had ceased to be operative by virtue of Section 83(2) of the CGST Act, which limits the operative period of an order under Section 83(1) to one year from its date. The petitioner relied on Section 83(2) of the CGST Act. The revenue's contentions were not recorded in the judgment.
Sections Cited
Section 83(1), Section 83(2)
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Cause title — parties, addresses and appearances
O R D E R % 23.09.2024
Issue notice.
The learned counsel for respondent no.1 accepts notice.
The petitioner has filed the present petition, inter alia, praying that the direction be issued to the respondent to de-freeze / allow the operation of its bank account bearing No.1509050013165 maintained with the United Bank of India, A-81, C R Park Branch, New Delhi- 110019 (respondent no.2).
The petitioner states that the aforesaid bank account was provisionally attached under Section 83(1) of the Central Goods and Services Tax Act, 2017 (hereafter the CGST Act) and a communication letter to the said effect was sent to respondent no.2 on 14.05.2020. 5. It is the case of the petitioner that the order dated 12.05.2020 is no This is a digitally signed order. The authenticity
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