The process to comply with regard to section 83(2) of the CGST Act, 2017 when provisional attachment of property ceases to have an effect, the Central Board of Indirect Taxes and Customs (CBIC) is notified.
“Keeping in view the convenience of taxpayers, the Board prescribes the procedure that in such types of situations, the Commissioner shall issue communication/an intimation to the concerned authority/bank, drawing attention to the particulars of the Order/Form DRC-22 (which made the provisional attachment) and the provisions of section 83 (2) of the CGST Act, 2017, and further indicating the release/restoration of the relevant property/account, in terms of those provisions. This intimation shall be copied to the person concerned. This procedure be implemented immediately, including for dealing with similar pending cases,” the advisory read.
GST Section 83 has the provision to furnish the orders for the provisional attachment of the property along with the bank account, so as to secure the interest of the revenue in the related cases. In the current times, the provisional attachment process and release/restoration of property are prescribed in rule 159 of CGST Rules, 2017.
Section 83(2) of CGST Act, 2017 states – “Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under subsection (1).”
In cases where provisions are applicable, such as the provisional attachment of a bank account, there have been instances where individuals have filed a writ petition requesting that the Commissioner issue an intimation of the release of such provisional attachment. This is because banks and pertinent authorities often request such communication. These cases have been brought before the Delhi High Court.
After consulting with the policy wing, it has been observed that according to the legal position outlined in section 83(2) and rule 159, the property is no longer subject to provisional attachment. However, it is necessary to further discuss and take action to include a prescribed language for the release or restoration of provisional attachment in a specific form, similar to GST DRC-23.
