Ireo Grace Realtech PVT. LTD. vs. Union Of INDIA And Others
Facts
The petitioner, IREO GRACE REALTECH PRIVATE LIMITED, filed a writ petition challenging the attachment of its bank accounts 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. The petitioner had previously created a fixed deposit of Rs. 20 Crores pursuant to a court order dated January 7, 2021, after which the bank accounts were de-freezed. The petitioner noted that proceedings related to a show cause notice for the service tax period of 2013 to 2017 were 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were attached on April 9, 2020, and one year had elapsed during the pendency of the petition, the attachment was no longer in effect. The Court noted that the petitioner had already created a fixed deposit of Rs. 20 Crores pursuant to a prior order, and the bank accounts had been de-freezed. Consequently, no further orders were required regarding the attachment itself. The issue concerning the vires of Section 83 of the Act, 2017, was expressly left undecided. The Court directed that the fixed deposit of Rs. 20 Crores be released to the petitioner.
Key Issues
1. Whether the attachment of property under Section 83 of the Central Goods and Services Tax Act, 2013, is valid beyond a period of one year? The petitioner argued that the attachment is only valid for one year and since that period has elapsed, the attachment is no longer effective. The respondents' arguments are not recorded in the judgment. 2. Whether the vires of Section 83 of the Act, 2017, are valid? This issue was expressly left open by the Court.
Sections Cited
Section 83
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 232-2 CWP-17989-2020 (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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