M/S. Long View Distributers Private Limited And Ors. vs. Union Of INDIA And Ors.

Held

The Court held that the impugned order of attachment of the petitioner's DEMAT account, passed under Section 83 of the CGST Act, 2017, had lost its force. The reasoning was based on the undisputed fact presented by the petitioners that the maximum period of continuation for such an attachment order is one year, and this period had expired. Consequently, the Court declared that the order could no longer be continued. The Court further stated that all legal consequences would automatically follow from this declaration. No specific amount in dispute was recorded. No issue was expressly left undecided.

Facts

The petitioners, M/s. Long View Distributors Private Limited & Anr., filed a writ petition challenging an order of attachment of their DEMAT account. This order was passed on March 1, 2021, under Section 83 of the Central Goods and Services Tax (CGST) Act, 2017. The petitioners argued that the maximum period for continuation of an attachment order under Section 83 of the Act is one year, and this period had already expired. The respondents, the CGST Authorities, did not deny this fact.

Key Issues

1. Whether the order of attachment of the petitioner's DEMAT account, passed under Section 83 of the CGST Act, 2017, has lost its force due to the expiry of its maximum continuation period. Petitioner's Contention: The petitioners contended that the maximum period for which an order of attachment under Section 83 of the CGST Act can remain in force is one year. They asserted that this one-year period had already expired, rendering the impugned order invalid and unenforceable. Revenue's Contention: The respondents, representing the CGST Authorities, did not deny the petitioners' submission regarding the expiry of the one-year period for the attachment order.