Vikas Enterprises Vs Commissioner of Central Tax (GST) (Delhi High Court)
Authority to issue Provisional Attachment Order under CGST Act is solely vested with the Commissioner
The Hon’ble Delhi High Court in M/s Vikas Enterprises v. Commissioner of Central Tax (GST), Delhi North & Anr. [W.P.(C) 9495 of 2023 dated July 31, 2023] set aside the letter issued by the Superintendent instructing to freeze the bank account of the assessee and held that the power to issue order of attachment of bank accounts under the Central Goods and Services Tax Act, 2017 (“the CGST Act”) is only with the Commissioner and not below the rank of Commissioner can pass such order. Further, imposed the cost INR 5,000 on the Superintendent who issued such order.
Facts:
M/s. Vikas Enterprises (“the Petitioner”) maintained bank account with State Bank of India. The Branch Manager of the State Bank of India was served a communication dated March 03, 2022 (“the Impugned communication”) by the Superintendent Anti-Evasion directing to furnish certain bank documents pertaining to the Petitioner and further directed the bank not to permit any debit from the Petitioner’s bank account maintained with the said bank without prior permission of the Respondent.
The Petitioner filed writ before the Hon’ble Delhi High Court.
The Petitioner relied upon the Judgement of Radha Krishan Industries v. State of Himachal Pradesh & Ors. [(2021) 6 SCC 771] wherein the Hon’ble Supreme Court held that the order under Section 83 of the CGST Act cannot be passed by any officer other than the Commissioner and this can be done only if he is satisfied that it is necessary to pass such an order for protecting the interest of Revenue.
Issue:
Whether is Superintendent has power to issue notice under Section 83 of the CGST Act to attach the bank Account?
Held:
The Hon’ble Delhi High Court in W.P.(C) 9495 of 2023 held as under:
