GST Provisional Attachment not Valid after Expiry of Time Period u/s 83 of CGST Act: Delhi HC directs to Lift Attachment [Read Order]

In an assessee-friendly ruling, the Delhi High Court has directed the GST department to lift the attachment as the same cannot be valid after the period prescribed under section 83 of the Central GST Act, 2017.

Earlier, the CGST, Delhi East vide orders dated 31.03.2021 provisionally attached the bank accounts and property of the assessee, Nitin Singhania. The assessee approached the High Court for relief.

The division bench of the High Court comprising Justice Rajiv Shakdher and Justice Tara VitastaGanju has quashed the provisional attachment as the same ceased to have effect after 16 months in terms of Section 83 (2) of the Act.

After considering the facts and documents, the Court has held that “In these circumstances, on a plain reading of Section 83 of the Central Goods and Service Tax Act, 2017, the attachment order cannot continue. Accordingly, the respondent is directed to lift the attachment. The respondent will convey the information in this behalf, to the concerned bank, within three days of the receipt of a copy of the order passed today. Accordingly, the prayer made in clause (a) (i) to (iv) and prayer (b) are allowed. The writ petition is disposed of in the aforesaid terms. Consequently, the pending application shall stand closed. It is however, made clear that this will not come in the way of the respondent carrying out investigation(s), if any, against the petitioner or take next steps in the matter albeit as per law.”

Mr R.P. Singh and Mr Shivam Tyagi, Advs appeared for the petitioner-assessee. Ms Arunima Dwivedi, Sr. Standing Counsel with Ms Ashi Sharma and Mr Ved Prakash, Advs. represented the department.

To Read the full text of the Order CLICK HERE

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