M/S Neutron Steel Trading PVT LTD & Ors. vs. Union Of INDIA & Ors.
Held
The Court held that the provisional attachment order could not survive beyond the stipulated one-year period under Section 83 of the Act, as it was not renewed. Consequently, the order dated 28.09.2020, which sought to continue the attachment, was set aside.
Facts
The petitioner's bank account was provisionally attached on 14.08.2020. The petitioner challenged this order and a subsequent order dated 28.09.2020. More than one year, the maximum period for investigation under Section 83, had passed since the initial attachment.
Key Issues
Whether a provisional attachment order under Section 83 of the CGST Act can continue beyond the statutory period of one year without renewal. The legal efficacy of the subsequent order continuing the attachment.
Sections Cited
Section 83, Rule 159
AI-generated summary — verify with the full judgment below
W.P.(C)No.1392/2021 $~13 * IN THE HIGH COURT OF DELHI AT NEW DELHI %
Decision delivered on: 15.09.2022 + W.P.(C) 1392/2021
M/S NEUTRON STEEL TRADING PVT LTD & ORS... Petitioners Through: Mr T.P.S. Kang, Adv. with Ms Nisha Dhaka, Adv.
versus
UNION OF INDIA & ORS.
..... Respondents Through: Mr Asheesh jain, CGSC with Mr Adarsh Kumar Gupta & Mr keshav Mann, Advs. for R-1&2. Mr Harpreet Singh, Sr. Standing Counsel with Ms Suhani Mathur & Jatin Kumar Gaur, Advs. for R- 3 to 5. CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MS. JUSTICE TARA VITASTA GANJU [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J. (ORAL):
The following substantive reliefs have been sought by the petitioner in the writ petition: “a) To declare Rule 159 and sub rules (1) (5) and (6) ultra vires to constitution; b) To issue a Writ of Mandamus or any other appropriate writ in the nature of mandamus whereby setting aside the order dated 14.08.2020 & 28.09.2020 passed by the Respondent 3;”
The judgment continues below.
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