Ireo Victory Valley Private Limited vs. Union Of INDIA And Others
Facts
The petitioner, IREO VICTORY VALLEY PRIVATE LIMITED, filed a writ petition challenging the attachment of its property under Section 83 of the Central Goods and Services Tax Act, 2013. The bank accounts were attached on April 9, 2020. During the pendency of the petition, one year elapsed since the attachment. Pursuant to a court order dated January 7, 2021, the petitioner created a fixed deposit of Rs. 20 Crores, after which the bank accounts were de-freezed. The petitioner's counsel stated that proceedings related to a show cause notice for the service tax period of 2013 to 2017 are still pending adjudication.
Held
The Court held that the attachment of property under Section 83 of the Central Goods and Services Tax Act, 2013 is valid only for a period of one year. Since the bank accounts were attached on April 9, 2020, and one year had elapsed during the pendency of the petition, the attachment had expired. The Court noted that the petitioner had created a fixed deposit of Rs. 20 Crores pursuant to an order dated January 7, 2021, and the bank accounts had been de-freezed. Consequently, no further orders were required regarding the attachment itself. The Court also stated that the issue of the vires of Section 83 of the Act, 2017 shall remain open. The Court directed that the fixed deposit of Rs. 20 Crores made by the petitioner be released to the petitioner for utilization. The present writ petition was disposed of.
Key Issues
1. Whether the attachment of property under Section 83 of the Central Goods and Services Tax Act, 2013 is valid for a period exceeding one year, turning on Section 83 of the Act. Petitioner's arguments: The petitioner contended that the attachment of property under Section 83 of the Act is valid only for a period of one year. Since one year had elapsed from the date of attachment (April 9, 2020), the attachment had lapsed. Respondents' arguments: The judgment does not record any specific arguments from the respondents regarding the validity of the attachment beyond one year. However, the respondents were represented by counsel.
Sections Cited
Section 83
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 232-4 CWP-17992-2020 (O&M)
Date of decision:- 16.02.2023 CORAM: HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Saurabh Kapoor, Advocate and Mr. Gajendra Maheshwari, Advocate for the petitioner.
Mr. Sourabh Goel, Advocate with Ms. Shivani Sahni, Advocate and Mr. Tej Bahadur, Advocate for the respondents.
Ritu Bahri, J. (Oral)
Attachment of property under Section 83 of the Central Goods and Services Tax Act, 2013 (for short 'the Act') is valid only for a period of one year. The bank accounts were attached on 09.04.2020 and during the pendency of this petition, one year has elapsed. Pursuant to order dated 07.01.2021, the petitioner had created a fixed deposit of Rs.20 Crores and in this backdrop the account had been de-freezed. Since the account has been de-freezed, counsel for the petitioner submits that proceedings pursuant to the show cause notice with respect to the service tax period of the year 2013 to 2017 is pending adjudication. As far as present writ p
The judgment continues below.
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