State Tax Officer cannot issue notice for ‘Provisional attachment’ under GST

State Tax Officer does not have jurisdiction to issue notice for ‘Provisional attachment’ under Section 83 of MGST Act

The recent judgment of the Hon’ble Bombay High Court in the case of Saket Agarwal v. Union of India [Writ Petition (L) No. 22585 Of 2023 dated August 31, 2023] has significant implications for the jurisdiction of State Tax Officers under Section 83 of the Maharashtra State Goods and Services Tax Act, 2017 (MGST Act). Hon’ble Bombay High Court held that, the State Tax Officer does not have any jurisdiction to issue notice/communication under Section 83 of the Maharashtra State Goods and Services Tax Act, 2017 (MGST Act).

Facts:

The case revolved around the issuance of a notice/communication by the State Tax Officer under Section 83 of the MGST Act, dated April 21, 2023, to the Officer-In-Charge of the Central Depository Services (India) Ltd. The petitioner, Saket Agarwal, challenged this communication, seeking its quashing through a writ before the Bombay High Court.

Issue:

The central issue before the court was whether the State Tax Officer had the jurisdiction to issue a notice of ‘provisional attachment’ under Section 83 of the MGST Act.

Held:

The court unequivocally held that the State Tax Officer does not possess the jurisdiction to issue such communications under Section 83 of the MGST Act. This ruling establishes a precedent regarding the limits of the State Tax Officer’s powers in initiating provisional attachment proceedings.

Furthermore, the court noted that since the impugned communication itself was being withdrawn, the petitioner was advised to promptly inform the Officer-In-Charge of the Central Depository Services (India) Ltd. about the withdrawal of the communication.

Conclusion: The judgment in Saket Agarwal v. Union of India serves as an important legal precedent, clarifying the extent of authority vested in State Tax Officers under Section 83 of the MGST Act. It firmly establishes that State Tax Officers lack jurisdiction to issue notices of ‘provisional attachment’ under this section.

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(Author can be reached at info@a2ztaxcorp.com)