Provisional Attachment Under GST Section 83 Automatically Expires After One Year, Bank Account Released The HC ruled that provisional attachment under section 83 of CGST Act, 2017 automatically ceases after one year from the date of order. The petitioner's ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Provisional Attachment Under GST Section 83 Automatically Expires After One Year, Bank Account Released
The HC ruled that provisional attachment under section 83 of CGST Act, 2017 automatically ceases after one year from the date of order. The petitioner's account, attached via orders dated 22.05.2019 and 13.07.2020, was deemed released as the statutory period had expired. The court noted petitioner's eventual cooperation with authorities, including transferring the disputed amount to government and appearing for investigation as directed. The writ petition was disposed of without costs after petitioner committed to continued cooperation in the proceedings.
Issues: 1. Provisional release of attachment under section 83 of CGST Act, 2017.
Analysis: The Petitioner sought provisional release of the attachment placed on their account under orders dated 22.05.2019 and 13.07.2020. The contention raised was that as per section 83 of the CGST Act, 2017, provisional attachment cannot exceed one year. The Respondents argued that the Petitioner was uncooperative in the investigation, leading the Court to direct the Petitioner to cooperate. The Petitioner eventually agreed to transfer the amount to the government and appeared before the authority as per the Court's order on 11.03.2022.
The Court noted the importance of the Petitioner's cooperation in the investigation process. The Petitioner's assurance, through their counsel, of full cooperation and willingness to attend the Respondents' office when summoned was considered. Section 83(2) of the CGST Act, 2017 specifies that provisional attachment ceases to have effect after one year from the date of the order under subsection 1. The impugned order in this case was under subsection 1 of section 83.
As a result of the statutory provision, the provisional attachment made on 13.07.2020 automatically ceased to have effect after one year. The Petitioner's appearance before the authority, recording of statement, and commitment to cooperate in the proceedings further solidified the decision. Consequently, the Court disposed of the Writ Petition without any costs being imposed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
