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IN THE HIGH COURT OF DELHI
Manmohan, Navin Chawla, JJ.
Nitin Singhania - Appellant
Versus
Commissioner of Goods and Services Tax East - Respondent
W.P.(C) 14647 of 2021
Decided On : 20-12-2021
JUDGMENT
Manmohan, J.:
C.M.No.46150/2021
Exemption allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) No.14647/2021
1. Present writ petition has been filed challenging the order dated 31st March, 2021, whereby the respondent has directed the Bankers of the petitioner to provisionally attach the petitioner's personal bank accounts and immovable properties. Petitioner also seeks directions to the respondent to de-freeze the personal bank accounts and the immovable properties of the petitioner.
2. Learned counsel for the petitioner states that the petitioner is not a `taxable person' as defined under Section 2(107) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to `CGST Act') and is not liable to pay any tax under the said Act. She states that there is no material on record to show the involvement of the petitioner in the alleged offence and so no prima facie case is made out against the petitioner in terms of Section 132 of the CGST Act.
3. This Court in Watermelon Management Services Private Limited vs. The Commissioner, Central Tax, GST Delhi (East) & Anr., W.P.(C) No.3274/2020 has held that writs cannot be entertained as petitioner has efficacious alternative remedy before competent authority by filing objections under Rules 159(5) of the CGST Rules, 2017.
4. Keeping in view the aforesaid, the present writ petition is disposed of with liberty to the petitioner to file his objections under Section 159(5) of the CGST Rules, 2017. In the event, such objections are filed within two weeks, the same shall be decided by the competent authority in accordance with law within four weeks, thereafter,. The rights and contentions of all the parties are left open.
5. With the aforesaid directions, present writ petition stands disposed of.
The principle that a writ cannot be entertained when an efficacious alternative remedy exists is upheld under Section 159(5) of the CGST Rules, 2017.
Provisional attachment of bank accounts under the CGST Act ceases to be valid after one year unless renewed, emphasizing the necessity for adherence to legal procedures.
Provisional attachment orders under the CGST act cease to have effect after one year, and no fresh attachment order can be issued thereafter.
The court ruled that accounts may be provisionally frozen for penalties but excess funds must be accessible to petitioners pending final determination.
Provisional attachment orders under Section 83 of the CGST Act cease after one year unless proceedings are pending; failure to comply undermines enforcement actions.
The main legal point established in the judgment is that the provisional attachment order of a bank account ceases to have effect after one year from the date of issuance under Section 83 of the CGST....
Provisional attachments under GST cease after one year if no show cause notice is issued, affirming the need for timely communication in tax proceedings.
Section 83(2) of the CGST Act provides for the cessation of provisional attachment after one year from the date the order was made under Section 83(1).
The legal principle established is that a provisional attachment under Section 83 of the CGST act ceases to have effect after one year from the date of the order.
Provisional attachment under Section 83 of the CGST Act ceases after one year unless renewed, rendering ineffective any unrenewed attachment orders.
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