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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S.G.Pandit, K.V. Aravind
Principal Commissioner Of Central Tax GST Commissionerate – Appellant
Versus
Narasimhan Engineering Contractors Private Limited – Respondent
JUDGMENT :
K. V. ARAVIND, J.
Heard Sri Aravind V. Chavan, learned Senior Standing Counsel for the appellants, Sri Raghavendra B. Hanjer, learned counsel for caveator/respondent No.1, and Sri Francis Xavier, learned counsel for respondent No.2.
2. The present appeal is filed by the Revenue under Section 4 of the Karnataka High Court Act, 1961, assailing the order dated 25.04.2025 passed in Writ Petition No.11065/2025, whereby the provisional attachment of the bank account under Section 83 of the Central Goods and Services Tax Act, 2017 (for short, ‘CGST Act’), has been quashed.
2.1 The writ petition was filed with a prayer to quash the blocking of Input Tax Credit (ITC) and the provisional attachment of the bank account, as well as the blocking of the electronic credit ledger, along with consequential relief directing the unblocking of ITC and the release of the bank account.
2.2 Learned counsel for the appellant submits that the present appeal concerns only the provisional attachment of the bank account. Accordingly, this judgment is confined to the issue of provisional attachment of the bank account.
3. The respondent-assessee is registered under the provisions of the GST Act, 2017, and
The court held that Section 83 of the CGST Act does not require a pre-decisional hearing before provisional attachment and strict legal standards must be met for such actions.
The necessity of the formation of opinion by the Commissioner, the live nexus to the purpose of protecting the interest of the government revenue, and the existence of tangible material before the Co....
The main legal point established in the judgment is that the provisional attachment under Section 83 of the CGST Act ceases to have effect after the expiry of one year from the date of the order, and....
, time can be extended for a further period of six month. Appropriate order for extension of period of provisional attachment would only be passed upon satisfaction of the criteria listed out. An inj....
Provisional attachment orders under Section 83 of the CGST/KGST Act automatically cease to have effect after one year, with no scope for renewal or reissuance by tax authorities.
The court confirmed that provisional attachment of assets under the CGST Act is valid only when initiated proceedings comply with specified statutory chapters.
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