Case Law Details
Merlin Facilities Pvt. Ltd. Vs Union Of India & Ors. (Delhi High Court)
In an intriguing case of Merlin Facilities Pvt. Ltd. Vs Union of India, the Delhi High Court dealt with the legality of a provisional attachment order under Section 83 of the Central Goods and Service Tax Act, 2017 (CGST Act). The Court was asked to consider the continued enforceability of the attachment order that provisionally attached the petitioner’s bank accounts.
Analysis: The crux of the case lies in the interpretation of Section 83(2) of the CGST Act, which stipulates a maximum operative period of one year for any provisional attachment order. The Delhi High Court concluded that as per the clear wording of this section, any such attachment order loses its force after the completion of a year from its date of issue.
Despite the respondent’s assertion of the petitioner being a non-cooperating non-existing entity, the Court upheld the rule of law as per the provisions of the CGST Act. As no further orders were passed for dues recovery, and the statutory period for the impugned order had lapsed, the Court ruled that the petitioner was free to operate its bank accounts without any impediments arising from the attachment order.
Conclusion: This ruling by the Delhi High Court in the case of Merlin Facilities Pvt. Ltd. Vs Union of India highlights the critical importance of adhering to statutory timelines set out in legislation such as the CGST Act. It reaffirms the protection of taxpayers’ rights against prolonged provisional attachment of their assets.
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