Ankur Garg And Associates And Anr vs. Union Of INDIA And Ors

Held

The Court held that since the period mandated under Section 83 of the CGST Act, 2017, for the provisional attachment of goods, securities, and accounts has expired, the attachment has come to an end. The Court noted that the revenue accepted this fact and confirmed that necessary instructions have been issued to the relevant offices in light of a previous High Court order. Consequently, the Court found no subsisting issue to adjudicate upon. The petition was disposed of on this basis. The ratio decidendi is that a challenge to a provisional attachment under Section 83 of the CGST Act, 2017, becomes infructuous once the statutory period for such attachment expires.

Facts

The petitioners, Ankur Garg and associates and another, filed a writ petition challenging the provisional attachment of their goods, securities, and accounts under the CGST Act, 2017. The respondents were the Union of India and others. The challenge was to the action of provisional attachment. The procedural history relevant to the decision is that the period mandated under Section 83 of the CGST Act, 2017 for such an attachment has expired. The revenue accepted this fact.

Key Issues

1. Whether the provisional attachment of goods, securities, and accounts, which has expired by efflux of time under Section 83 of the CGST Act, 2017, continues to be a valid challenge before the High Court? The petitioners argued that the attachment was illegal and sought its quashing. The revenue, represented by Mr. Sourabh Goel, Senior Standing Counsel, accepted that the period mandated under Section 83 of the CGST Act, 2017, for the attachment has expired. The revenue further stated that in view of a previous order dated 10.11.2021 in CWP-13453-2020 titled 'M/s. RSL Distilleries Pvt. Ltd. vs. Union of India', necessary instructions have already been issued to the concerned offices.