Seema Gupta Vs Principal Commissioner of GST And Ors (Delhi High Court)
The Hon’ble Delhi High Court in Seema Gupta v. Principal Commissioner of GST [W.P. (C) NO. 7387 of 2024 dated May 24, 2024], directed the bank to permit the operation of assessee bank account, which was provisionally attached under Section 83 of Central Goods and Services Tax Act, 2017 (CGST Act).
Facts:
Seema Gupta (“the Petitioner”), bank account was provisionally attached by the Revenue Authority under Section 83 of the CGST Act vide Order dated January 27, 2022.
Thereafter, no fresh attachment order was passed.
Therefore, the Petitioner contended that, where no fresh attachment order has been issued and one year had been expired, the Petitioner should be allowed to operate the bank account.
Issue:
Whether the provisional attachment as per the section 83 of CGST Act ceases to have effect after the expiry of one year?
Held:
The Hon’ble Delhi High Court in W.P. (C) No. 7387 of 2024 held as under:
- Noted that, provisional attachment of the Petitioner’s Bank Account has ceased to have effect.
- Directed the bank to forthwith permit the Petitioner to operate the Bank Account.
Conclusion
The judgment in Seema Gupta vs. Principal Commissioner of GST signifies an important clarification by the Delhi High Court regarding the duration and effect of provisional attachments under the CGST Act. By upholding the statutory provision that provisional attachments lapse after one year in the absence of a fresh order, the court reaffirmed the rights of taxpayers against arbitrary restrictions on their financial operations.
