Case Law Details
Proex Fashion Private Limited Vs Government of India (Delhi High Court)
Conclusion: Power to attach the bank account must therefore be exercised only in strict compliance with the statutory power, and could not be extended to cover situations which were not expressly contemplated by the section. Absent the statutory precondition for exercise of the power of attachment, any order under Section 83 was wholly illegal and unsustainable.
Held: Assessee-company had challenged a communication by which bank account of assessee in the respondent Bank had been attached by respondent authority, purportedly under Section 83 of the CGSTax Act, 2017. GOI contended that assessee declared as a “risky exporter‟, and several communications addressed to assessee at its registered office were returned undelivered therefore, proceedings under Section 71 were initiated against assessee and the attachment of the bank account under Section 83 was pursuant to those proceedings. It was held that the power to attach the bank account must therefore be exercised only in strict compliance with the statutory power, and could not be extended to cover situations which were not expressly contemplated by the section. Absent the statutory precondition for exercise of the power of attachment, any order under Section 83 was wholly illegal and unsustainable. In the present case, the admitted position was that no proceedings under any of the provisions mentioned in Section 83 of the Act were in fact initiated against assessee. Therefore, the impugned order was ultra vires the statutory powers of GOI and was hereby quashed.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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