Case Law Details
A. P. Steels Vs Additional Director General (Karanataka High Court)
The Petitioner filed a writ petition seeking to set aside the impugned provisional attachment of bank account bearing under Section 83 of CGST Act.
The High Court held that the impugned provisional attachment of the Petitioner’s bank account was in vogue till 27.05.2020. The communication/order dated 28.05.2019 ceased to operate with the effect from 27.05.2020. Respondent Nos.1 and 2 were directed to de- freeze the Petitioners’ bank account.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
In the instant petition, the petitioners have sought for the following reliefs:
a. Set aside the impugned provisional attachment of bank account bearing No.8102000065256 of the 1st Petitioner maintained with the 2nd Respondent vide order bearing No. DGGI. F.No.Va/12/2018-19/BZU dated 28.05.2019 passed by the 1st Respondent under Section 83 of CGST Act as per Annexure-A by issuing a writ of Certiorari or any other order or writ in the nature of a Writ of Certiorari and
b. Set aside the impugned provisional attachment of bank account bearing No.81040000539463 of the 2nd petitioner maintained with the 2nd Respondent vide order bearing No.DGGI. F.No.Va/12/2018-19/BZU dated 28.05.2019 passed by the 1st Respondent under Section 83 of CGST Act as per Annexure-A by issuing a writ of Certiorari or any other order or writ in the nature of a Writ of Certiorari and
c. Direct the 1st Respondent to instruct the 2nd Respondent to defreeze the petitioner’s bank accounts and permit the petitioners to use the said accounts by issuing a writ of mandamus or any other writ in the nature of a Writ of Mandamus;
Or in the alternative
d. Declare that the order of provisional attachment of bank account bearing No.8102000065256 and 81040000539463 of the 1st and 2nd petitioner respectively maintained with 2nd Respondent vide order bearing No. DGGI. F.No.Va/12/2018-19/BZU dated 28.05.2019 passed by the 1st respondent under Section 83 of CGST Act as per Annexure-A has already lapsed as per Section 83(2) of the Central Goods and Service Tax Act, 2017.
Or in the alternative
e. Direct the 1st Respondent to consider the petitioner’s representation dated 25.02.2020 as per Annexure-B and direct the 1st Respondent to furnish all the details and documents sought for and conduct the entire proceedings afresh by providing a fair and sufficient opportunity of being heard by issuing a writ of mandamus or any other writ in the nature of a writ of Mandamus.
And/or
f. To grant any other relief(s) this Hon’ble Court deems fit and proper in the facts and circumstances of the case.
2. Learned counsel for the petitioners pointed out that impugned provisional attachment of Bank Account of the petitioners maintained with respondent No.2-Bank has been passed on 28.05.2019 under Section 83 of Central Goods and Service Tax Act, 2017 (for short ‘CGST Act’), whereas the present petition is presented on 22.06.2020.
3. It is further stated that provisional attachment of Bank Account of the petitioners under Section 83 of CGST Act, 2017 vide Annexure-A has come into force with effect from 28.05.2019 and it would be in vogue till 27.05.2020 i.e. for a period of one year from the date of provisional attachment, this impugned communication/order dated 28.05.2019 is not existing in the eye of law with effect from 27.05.2020. Consequently, respondents are required to give effect of de-freezing the petitioners’ bank account from 28 05.2020.
4. Per contra, learned counsel for the respondents submits that since the petitioners have questioned the validity of order/communication dated 28.05.2019, no interference is called for. That apart, this provisional attachment of bank account of the petitioners is under Section 83 of the GST Act, 2017.
5. Heard the learned counsel appearing for both the parties and perused the records.
6. Crux of the matter in the present petition is whether Annexure-A, communication/order dated 28.05.2019 in respect of provisional attachment of Bank Account of the petitioners under Section 83 of the CGST Act, is existing in the eye of law as on this day or not? Section 83 of GST Act reads as under:
“83 Provisional attachment to protect revenue in certain cases.-(1) Where during the prendency 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 period of one year from the date of the order made under sub-section (1).”
7. By virtue of the Sub Section 2 of Section 83 of the aforesaid Act, 2017, the impugned provisional attachment of Bank account of the petitioners dated 28.05.2019 passed by respondent No.1 under Section 83 of the CGST Act, 2017 is in vogue till 27.05.2020. Whereas, the petitioners have presented the present petition on 22.06.2020. As on 22.06.2020, the provisional attachment of bank account of the petitioners, the communication/order dated 28.05.2019 ceases to operate with the effect from 27.05.2020.
8. In view of the aforesaid legal position, respondent Nos.1 and 2 are hereby directed to de-freeze the petitioners’ bank account within a period of two weeks from the date of receipt of this order.
Accordingly, writ petition stands disposed of.
In view of the disposal of main petition, IA.No.1/2020 stands disposed of.
