Case Law Details
Jai Shri Banke Bihari Traders Vs Union Of India & Ors (Delhi High Court)
Introduction: The case of Jai Shri Banke Bihari Traders Vs Union Of India & Ors before the Delhi High Court concerns the provisional attachment of cash credit accounts under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioners challenged the order dated 04.08.2022, arguing against the validity of the attachment and highlighting the statutory limitations imposed by the law.
Detailed Analysis
1. Impugned Order: The petitioners contested the order passed under Section 83 of the CGST Act, which provisionally attached their cash credit accounts. They argued that the maximum period for such attachment, as per Section 83(2) of the CGST Act, is one year from the date of the order made under Section 83(1).
2. Ceasing of Operation: The petitioner’s counsel asserted that since the orders had ceased to operate, there should be no obstacle for the petitioners to operate their cash credit accounts. This argument was based on the statutory provision stipulating the duration of such attachments.
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