Back
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
| Table of Content |
|---|
| 1. provisional attachment quashed. (Para 2) |
| 2. no pre-decisional hearing mandated. (Para 4) |
| 3. justification for pre-decisional hearing. (Para 5) |
| 4. section 70 is not a proceeding. (Para 6 , 7) |
| 5. decisive points for consideration stated. (Para 8 , 9) |
| 6. no implicit hearing required in section 83. (Para 10 , 11 , 12 , 13 , 14) |
| 7. initiation of proceedings required for section 83. (Para 16 , 17 , 18) |
| 8. provisional attachment unsustainable without due proceeding. (Para 19) |
| 9. final order on appeal given. (Para 20) |
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)
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.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
