Since no proceedings under sections 62/63/64/67/73/74 of CGST Act were pending the order of provisional attachment is ultra vires Section 83 of the Act. Accordingly, the order of provisional attachment stands set aside.
Section 83 of the CGST Act, 2017 – Provisional Attachment of property -- The petitioner challenged provisional attachment of property order dated November 9, 2020 under Section 83 of the Act, 2017. The petitioner counsel submitted that as on date no proceedings under sections 62/63/64/67/73/74 of the Act were pending and, therefore, the jurisdictional fact for invocation of the power conferred by Section 83 did not exist. The respondent counsel submitted that the petitioner’s premises were searched on December 3, 2020 in pursuance of power conferred by Section 67(2) of the Act and, therefore, the contention of the petitioner that no proceedings are pending, lacks substance. The court observed that no proceedings against the petitioner had been initiated when the order was issued. If at all any proceedings initiated were on December 3, 2020 when the search of the petitioner’s premises was conducted. Therefore, no proceedings of the nature as referred to in Section 83 of the Act were pending against the petitioner as on November 9, 2020.
Held that:- The Hon’ble High Court set aside the order of provisional attachment.
Since no proceedings under sections 62/63/64/67/73/74 of CGST Act were pending the order of provisional attachment is ultra vires Section 83 of the Act. Accordingly, the order of provisional attachment stands set aside.
Section 83 of the CGST Act, 2017 – Provisional Attachment of property -- The petitioner challenged provisional attachment of property order dated November 9, 2020 under Section 83 of the Act, 2017. The petitioner counsel submitted that as on date no proceedings under sections 62/63/64/67/73/74 of the Act were pending and, therefore, the jurisdictional fact for invocation of the power conferred by Section 83 did not exist. The respondent counsel submitted that the petitioner’s premises were searched on December 3, 2020 in pursuance of power conferred by Section 67(2) of the Act and, therefore, the contention of the petitioner that no proceedings are pending, lacks substance. The court observed that no proceedings against the petitioner had been initiated when the order was issued. If at all any proceedings initiated were on December 3, 2020 when the search of the petitioner’s premises was conducted. Therefore, no proceedings of the nature as referred to in Section 83 of the Act were pending against the petitioner as on November 9, 2020.
Held that:- The Hon’ble High Court set aside the order of provisional attachment.