Dinesh Kumar Goyal vs. Union Of INDIA And Ors.
Held
The Court held that the attachment order dated October 25, 2019, issued under Section 83 of the CGST Act, 2017, had lost its force. The reasoning was based on the petitioner's submission that the maximum period for an attachment order under Section 83 is one year, and the respondent CGST authority's admission that they had not extended the tenure of the said order. Therefore, the Court found the action of the respondent bank in not allowing the petitioner to operate his bank account on the basis of the expired attachment order to be not legally justified. The operative direction was that the bank shall not act any further on the basis of the impugned attachment order dated October 25, 2019. No issue was expressly left undecided.
Facts
The petitioner, Sri Dinesh Kumar Goyal, challenged the action of the respondent bank in preventing him from operating his bank account. This action was based on an order of attachment dated October 25, 2019, issued by the Deputy Director, DGGI, Kolkata Zonal Unit, under Section 83 of the CGST Act, 2017. The petitioner contended that the attachment order had lost its force as the maximum period for such an order under Section 83 is one year. The respondents, represented by the CGST authority, acknowledged that they had not further extended the tenure of the attachment order.
Key Issues
1. Whether the attachment order dated October 25, 2019, issued under Section 83 of the CGST Act, 2017, has lost its force due to the expiry of its maximum validity period. Petitioner's Arguments: The petitioner argued that the attachment order, having been issued under Section 83 of the CGST Act, 2017, has a maximum validity of one year and has therefore expired, rendering it ineffective. Consequently, the bank's action of preventing him from operating his account based on this expired order is not legally justified. Revenue's Arguments: The respondents, representing the CGST authority, conceded that they had not extended the tenure of the attachment order dated October 25, 2019.
Sections Cited
Section 83
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2021 p.b. Sl. No.
W.P.A. 10012 of 2021 Sri Dinesh Kumar Goyal Vs. Union of India & Ors. (Via Video Conference) Mr. Arijit Chakraborty, Mr. Prabir Bera, Mr. Rajnish Kalawatia. ……for the petitioner. Mr. Somnath Ganguly, Mr. Sukalpa Seal, Ms. Priyanvada Singh. …….for the respondents. In this matter, the petitioner has challenged the action of the respondent bank not allowing the petitioner to operate the account in question of the petitioner on the basis of an order of attachment dated 25th October, 2019 being Annexure P-2 to the writ petition passed by the Deputy Director, DGGI, Kolkata Zonal Unit under Section 83 of the CGST Act, 2017. The petitioner submits that the aforesaid attachment order under Section 83 of the CGST Act, 2017 has lost its force since the maximum period is one year of an order of attachment under Section 83 of the CGST Act, 2017. Mr. Ganguly, learned advocate appearing for the respondents CGST authority submits that his client has 2 not further extended the tenure of the aforesaid attachment order dated 25th October, 2019. Considering the submission of the parties, this writ petition is dispos
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