Case Law Details
Sakshi Bahl & Anr. Vs The Principal Additional Director General (Delhi High Court)
Introduction: The case of “Sakshi Bahl & Anr. vs. The Principal Additional Director General” heard in the Delhi High Court revolves around the provisional attachment of bank accounts in a Goods and Services Tax (GST) matter. The court’s decision raises important questions about the legality of such actions and the need for adherence to the law.
Detailed Analysis: In this case, the petitioners challenged an order issued on 06.02.2023 by the Principal Additional Director General of the Directorate General of Goods and Services Tax Intelligence (DGGI), Delhi Zone Unit. The order directed the provisional attachment of the savings bank accounts of the petitioners, prohibiting any withdrawals without the department’s permission. The petitioners contended that they were neither taxable persons nor individuals covered under Section 122(1A) of the Central Goods and Services Tax Act, 2017 (GST Act), making the order devoid of jurisdiction.
The respondent based the attachment on a statement provided during an investigation into fake firms involved in fraudulent Input Tax Credit. The statement implicated a third party, Shri Rajiv Chawla, who allegedly issued a check for GST but lacked sufficient funds in the account.
The court found that Section 83 of the GST Act empowers the Commissioner to provisionally attach the assets of a taxable person but does not extend this power to individuals not liable for GST. The petitioners, in this case, did not fall under the category of taxable persons or those specified under Section 122(1A) of the Act.
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