Extract of Section 82 and 83 of CGST Act, 2017
Tax to be First Charge on Property
82. Notwithstanding anything to the contrary contained in any law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, any amount payable by a taxable person or any other person on account of tax, interest or penalty which he is liable to pay to the Government shall be a first charge on the property of such taxable person or such person.
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, 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).
Procedure for Attachment under GST:
If the Commissioner wants to provisionally attach any property (including bank account), he will pass an order in DRC-22 which will contain the details of the property attached. The commissioner can issue DRC-22, anytime after issuance of demand notice under Sections 63, 73 or 74. Similarly, such notice for attachment shall be made only after the issuance of assessment orders under Sections 62 or 64.
Upon receipt of this order, the taxpayer can file an objection against it stating that such property was not liable to attachment. This objection must be filed within seven days of attachment of the property. The Commissioner is then bound to give the taxpayer an opportunity of being heard. In case he is satisfied with the response given by the taxpayer, he will release the attached property by passing an order in DRC-23.
In case the property attached is of a perishable or hazardous nature, the taxpayer will have to either settle the relevant tax dues or pay the market price for the property, whichever is lower. Upon settlement, the Commissioner will release such property by passing an order in DRC-23. If the taxpayer does not agree to either pay the market price of the property or settle the relevant tax dues, the Commissioner may dispose of the property and apply the proceeds against the dues of the taxpayer.
Some Important Judgments
