M/S. Aarush Enterprises vs. The Commissioner
Held
The Court held that the provisional attachment order dated May 19, 2023, issued under Section 83 of the CGST Act, ceased to have effect upon the expiry of one year from its date of issuance, i.e., May 19, 2023. The Court reasoned that Sub-section (2) of Section 83 of the CGST Act is couched in mandatory language, clearly stating that every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order. The Court found no difficulty in holding that the impugned order lost its effect on May 19, 2023. The Court's decision is based on the literal interpretation of the statutory provision. The Court clarified that this order would not prevent the respondents from taking further action against the petitioner in accordance with the law. The Writ Petition was disposed of accordingly.
Facts
The petitioner, M/s. Aarush Enterprises, filed a writ petition challenging an order dated May 19, 2023, issued by the Commissioner, Hyderabad GST Commissionerate. This order, passed under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act), provisionally attached the petitioner's bank account. The petitioner argued that the attachment order had lost its effect upon the completion of one year from its issuance date. The respondent, the Commissioner, acknowledged that while there was internal correspondence regarding the extension of the provisional attachment, no formal decision for extension had been taken by any competent authority.
Key Issues
1. Whether the provisional attachment order dated May 19, 2023, issued under Section 83 of the CGST Act, has ceased to have effect upon the expiry of one year from its date of issuance, as stipulated by Section 83(2) of the CGST Act? The petitioner contended that Section 83(2) of the CGST Act mandates that a provisional attachment shall cease to have effect after one year from the date of the order. Therefore, the impugned order dated May 19, 2023, automatically became ineffective on May 19, 2024, and should be set aside. The respondent conceded that despite internal discussions for extending the provisional attachment, no competent authority had taken a decision to extend its period. This implicitly supports the petitioner's contention regarding the automatic cessation of the attachment after one year.
Sections Cited
Section 83, Section 83(2)
AI-generated summary — verify with the full judgment below
[ 3411 ] LI- i r, *l!, I frr..ri 1a:+l [. '' ,' i{ { HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SECOND DAY OF JULY TWO THOUSAND AND TWENTY FOUR PRESENT THE HON'BLE SRI JUSTICE SUJOY PAUL AND THE HON'BLE SRI JUSTICE NAMAVARAPU RA"'ESHWAR RAO WRIT PETITION NO: 14809 OF 2024 Between AND M/s. Aarush Enterprises, 3-6-293, Opposite Apollo Hospital, Hyderguda, Hyderabad, Telangana- 500029. Represented by its Proprietor, Sudhir Kistappa Naik, S/o Kishtappa Naik, Aged about 40 years, Rio 10-3-7412311, Teachers Colony, East Marredpally, Secunderabad, Hyderabad, Telangana- 500026 ...PETrroNER t 't,ili 4 .1. 1. The Commissioner, Hyderabad GST Commissionerate, GST Bhavan, LB Stadium Road, Basheer Bagh, Hyderabad Telangana- 500 004
The Deputy Commissioner (ST ll), Enforcement Wing, Commercial Tax Department, 0/0 Commissioner ST, Nampally, Hyderabad Telangana
Branch Manager, lClCl Bank Limited, (IFSC Code. 1C1C0006305), Himayat Nagar Branch, 3-6-90l 12 to 9 and 908, Bqpide Bharat Petrol Pump, Hyderabad, Telangana-so0 029 '
Union of lndia, Ministry of Finance, Represented by its Secretary, North Block, New Delhi-1 10 001
State of
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