Parthavi Metal And Alloys Vs Union Of India & Ors. (Delhi High Court)
In the case of Parthavi Metal And Alloys vs. Union Of India & Ors., heard in the Delhi High Court, the petitioner challenges an order dated 04.08.2022 passed under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act), which provisionally attached the cash credit accounts of the petitioners.
The petitioner, represented by learned counsel, argues that according to Section 83(2) of the CGST Act, the maximum period for attachment of cash credit accounts is one year from the date the order is made under Section 83(1) of the CGST Act. Since the orders in question have ceased to operate, the petitioner contends that there should be no impediment to them operating the cash credit accounts.
The counsel for the respondents concedes to the statutory position that orders passed under Section 83(1) of the CGST Act, provisionally attaching cash credit accounts, have a lifespan of only one year and cease to operate after that period expires.
However, the counsel for the respondents informs the court that a fresh attachment order dated 13.12.2023 has been passed, once again provisionally attaching the cash credit accounts under Section 83(1) of the CGST Act.
