PROVISIONAL ATTACHMENT OF PROPERTY.

[Sadanand Bulbule]

Dear Sirs,

Section 83 of the GST Act, 2017 reads as under.

Provisional attachment to protect revenue in certain cases.

83. (1) Where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, if the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed.

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).

The question is whether the GST Commissioner, either under CGST or SGCT is authorized to delegate his powers under Section 83 to his subordinate proper officers to provisionally attach the property and Bank account? And what are the relevant provisions to do so?

Kindly enlighten.

With regards to experts & visitors of TMI.

AI Summary

Delegation of provisional attachment powers to subordinate officers questioned under GST law; such delegations may be open to challenge.
The document raises whether the power to make provisional attachment orders to protect revenue may lawfully be delegated by the commissioner to subordinate proper officers. It notes statutory provisions that empower provisional attachment and permit delegation by notification, records a high-court opinion finding such delegation to subordinate officers indefensible in a particular case, and explains that the opinion did not annul the underlying attachment provision; affected parties may challenge attachments while the revenue may pursue further judicial review.