M/S Milkfood Limited vs. Commissioner Of Central Taxes GST Delhi East
Facts
The Petitioner, M/s Milkfood Limited, filed a writ petition challenging letters dated September 14, 2020, and December 7, 2020, by which their bank accounts and immovable properties were provisionally attached under Section 83 of the CGST Act, 2017. The Petitioner sought the release of these attached assets. During the proceedings, the Respondent, Commissioner of Central Taxes GST Delhi East, informed the Court that a notice dated July 15, 2021, under Section 74 of the CGST Act had been issued to the Petitioner. Furthermore, a fresh attachment order dated February 24, 2022, had also been issued. In light of these developments, the Petitioner sought to withdraw the writ petition with liberty to file a fresh one on the same cause of action.
Held
The Court did not decide the merits of the challenge to the initial attachment orders. Instead, the Court noted the subsequent developments reported by the Respondent, namely the issuance of a notice under Section 74 of the CGST Act and a fresh attachment order dated February 24, 2022. In view of these subsequent actions by the revenue authorities, the Petitioner sought to withdraw the present writ petition. The Court, therefore, granted the Petitioner the liberty to file a fresh writ petition on the same cause of action. Consequently, the writ petition was dismissed as withdrawn. No specific findings were made on the legality or otherwise of the initial attachment orders, nor was the amount in dispute quantified or discussed.
Key Issues
1. Whether the provisional attachment of bank accounts and immovable properties under Section 83 of the CGST Act, 2017, was justified in the given circumstances? Petitioner's Contention: The Petitioner challenged the validity of the provisional attachment orders dated September 14, 2020, and December 7, 2020, seeking their release. The Petitioner's primary concern was the de-freezing of their bank accounts and properties. Respondent's Contention: The Respondent informed the Court about subsequent actions taken, including the issuance of a notice under Section 74 of the CGST Act on July 15, 2021, and a fresh attachment order dated February 24, 2022. This indicated that the revenue authorities were proceeding with the matter under different provisions and had re-issued attachment orders.
Sections Cited
Section 83, Section 74
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Cause title — parties, addresses and appearances
O R D E R
Present writ petition has been filed challenging the letters dated 14th September, 2020 and 07th December, 2020 whereby the bank accounts and the immovable properties of the Petitioner have been provisionally attached under Section 83 of the CGST Act, 2017. Petitioner also seeks directions to the Respondent to release/de-freeze the bank accounts and immovable properties attached by the Respondent vide the impugned letters dated 14th September, 2020 and 07th On the last date of hearing, learned counsel for the Respondent had sought time to obtain instructions. December, 2020. Today Mr.Harpreet Singh, learned standing counsel for the Respondent states th
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