Provisional attachment under GST cannot be repeated on the same facts after lapse of the earlier attachment, absent changed circumstances.

A second provisional attachment under Section 83 of the CGST Act cannot be sustained on the same facts after the earlier attachment has lapsed by efflux of time, absent any real change in circumstances or new facts. The Delhi HC treated provisional attachment as a draconian, pre-emptive measure intended only as a temporary safeguard, not as a recovery device after the statutory period ends. Applying the principle that what cannot be done directly cannot be done indirectly, the Court held the repeated attachment impermissible and allowed the petition.

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Issues: Whether a second provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 could be sustained after the earlier attachment had lapsed, in the absence of any change in circumstances or new facts.

Analysis: The assessment proceedings had already culminated in an order in original, and the first provisional attachment had ceased to operate by efflux of time under Section 83(2). The Court held that the power of provisional attachment is a draconian, pre-emptive measure and cannot be used as a recovery mechanism after the statutory period has expired. Since there was no change in circumstances and the second attachment rested on the same factual matrix, the repeated exercise of power under Section 83 was impermissible. The Court further applied the principle that what cannot be done directly cannot be done indirectly, and treated the issue as covered by the governing Supreme Court ruling relied upon by the petitioner.

Conclusion: The second provisional attachment was unsustainable and the petition was allowed.

Ratio Decidendi: A fresh or repeated provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 cannot be issued on the same facts after the earlier attachment has lapsed, unless supported by a real change in circumstances; provisional attachment is only a temporary protective measure and not a recovery device.

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