Roshani Sana Jaiswal Vs Commissioner of Central Taxes (Delhi High Court)
Delhi High Court which ruled that personal bank accounts of promoters cannot be attached under CGST
1. The respondent, before triggering the provisions of Section 83 of the Act, had to satisfy itself that there was a ‘pending’ proceeding under the provisions of Section 62 or Section 63 or Section 64 or Section 67 or Section 73 or Section 74 of the Act
2. The Court can, and should exercise its powers, under Article 226 of the Constitution, amongst others, in cases where the impugned action or order concerned is without jurisdiction1. In this case, one of the jurisdictional ingredients‟, which is missing, is that the petitioner is not a taxable person.
3. The GST Department failed to bring on record any material in respect of personal involvement of the Promoters of Milk Food in the alleged scam and secondly, that the Promoters are not a “Taxable Person” u/s 2(107) of the CGST Act, 2017 and therefore, their Personal Bank Accounts could not have been Provisionally Attached under the CGST Act, 2017.
4. The Hon’ble High Court of Delhi quashed the Provisional Attachment Order, while holding that : In the zeal to protect the interest of the revenue, the respondent cannot attach any and every property, including bank accounts of persons, other than the taxable person
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This writ petition is directed against the orders of even date, i.e., 07.12.2020 passed by the respondent, whereby several bank accounts of the petitioner have been provisionally attached.
1.1 The details of these bank accounts, which have been provisionally attached by the respondent, are set forth hereafter.
