2022 Supreme(Del) 216

IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Sudhir Kumar Jain, JJ.
M/s Pashupati Properties Estate Private Limited - Appellant
Versus
Commissioner Of Central Taxes Gst Delhi, - Respondent
W.P.(C) 3624/2022 & C.M.Nos.10740-10741/2022;
Decided On : 08-03-2022

Section 83(2) of the CGST Act, which governs the ceasing of effect of provisional attachment orders after one year, was the central legal principle established in the judgment.

Headnote:

Section 83 - Provisional attachment - The court directed the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner as the provisional attachment order ceased to have effect after the expiry of one year from the date the order was passed.

Fact of the Case:

The Petitioner challenged the letter issued under Section 83 of the CGST Act, 2017, directing the Bankers to provisionally attach immovable property. The Respondent clarified that no fresh attachment order had been issued after December 2020 and no show cause notice had been issued to the Petitioner.

Finding of the Court:

The court found that as per Section 83(2) of the CGST Act, the provisional attachment order ceased to have effect after one year from the date it was passed. Consequently, the court directed the Respondent to release the immovable properties of the Petitioner.

Issues: Challenge to the letter issued under Section 83 of the CGST Act, 2017 and the direction to release the provisionally attached immovable property.

Ratio Decidendi: The court's decision was influenced by Section 83(2) of the CGST Act, which stipulates that provisional attachment orders cease to have effect after one year from the date of the order.

Final Decision: The court directed the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from the date of the judgment.