Provisional GST Attachment of Assets Limited to 12 Months Without Fresh Order, Ensuring Timely Resolution for Taxpayers Delhi HC ruled that provisional attachment under GST Act cannot exceed 12 months without a fresh order. The court quashed the continued attachment beyond ...
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Provisional GST Attachment of Assets Limited to 12 Months Without Fresh Order, Ensuring Timely Resolution for Taxpayers
Delhi HC ruled that provisional attachment under GST Act cannot exceed 12 months without a fresh order. The court quashed the continued attachment beyond the statutory period, directing respondents to issue clarificatory instructions to the bank, thereby providing relief to the petitioner challenging the prolonged account freeze.
The Delhi High Court, through Hon'ble Justices Yashwant Varma and Ravinder Dudeja, adjudicated a petition challenging the attachment of the petitioner's bank account under Section 83 of the Central Goods and Services Tax Act, 2017. The Court noted that the provisional attachment "could not have continued beyond a period of 12 months" and that no fresh order under Section 83 was issued. It held that the subsequent issuance of a Show Cause Notice (SCN) "would not sustain a continuance of the provisional attachment." Consequently, the Court allowed the writ petition, quashing the continuation of the attachment order dated 12 May 2020, and directed the respondents to issue clarificatory directions to the bank forthwith.
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