M/S Pashupati Properties Estate Private Limited vs. Commissioner Of Central Taxes GST Delhi, (East)

Facts

The Petitioner, M/s Pashupati Properties Estate Private Limited, filed a writ petition challenging a letter dated December 7, 2020, issued under Section 83 of the CGST Act, 2017. This letter directed the Petitioner's bankers to provisionally attach an immovable property located at 6, The Greens, Rajokari, Delhi-110038. The Petitioner sought the release of this attached property. The Respondent is the Commissioner of Central Taxes GST Delhi (East). The petition was filed in 2022. On the last date of hearing, the Respondent sought time to obtain instructions. Today, the Respondent's counsel clarified that no fresh attachment order has been issued since December 2020 and no show cause notice under Section 74 of the CGST Act has been issued to the Petitioner.

Held

The Court held that the provisional attachment order dated December 7, 2020, issued under Section 83(1) of the CGST Act, 2017, is no longer effective. This is because, as per Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of one year from the date it was passed. Since no fresh attachment order has been issued after December 2020, and the impugned order was passed on December 7, 2020, it has expired. The Court reasoned that the statutory period of one year for the attachment to remain effective has elapsed. Consequently, the Court directed the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from the date of the order. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the provisional attachment order dated December 7, 2020, issued under Section 83 of the CGST Act, 2017, remains effective given the passage of time and the absence of further proceedings. Petitioner's Contention: The Petitioner argued that the attachment order, issued in December 2020, should no longer be effective. They sought the release of their attached immovable property. Respondent's Contention: The Respondent stated that no fresh attachment order has been issued after December 2020 and no show cause notice under Section 74 of the CGST Act has been issued to the Petitioner till date. They did not explicitly argue for the continued validity of the attachment order but provided factual updates.