Two Judges bench of the Rajasthan High Court consists of Justice Akil Khureshi and Justice Sudhesh Bansal ruled that the provisional attachment under section 83 of the Central Goods and Services Tax Act, 2017 will cease to have effect after the expiry of the period of one year from the date of order. In the instant case, the petitioner’s bank account was placed under provisional attachment by an order dated 03.12.2020 in the exercise of powers under Section 83 of the Central Goods and Services Tax Act by the department.
The counsel towards the applicant Advocate Jatin Harjai and Advocate Mohit Kumar Soni rendered that for sub-section (2) of Section 83 these provisional attachments would not live more than a period of 1 year. Section 83 of the CGST act relates to the provisional attachment to save revenue in some cases.
In sub-section (1) of section 83, the commissioner has the authority to order provisional attachments of the property of the taxpayer along with the bank account in which the proceedings beneath Chapters XII, XIV, and XV are due.
The division bench sees that Sub-section (2) of Section 83 furnishes that each provisional attachment will cease to have effect post expiry of the duration of one year from the order date made beneath sub-section(1).
The powers of provisional attachment and its inherent restrictions in the nature of protection have been examined in a recent decision of the Supreme Court on 20.04.2021 that every provisional attachment will cease to have effect after the expiry of the period of one year from the date.
In the present case, the order of attachment was passed more than a year back and would therefore be ceased to be effective upon completion of a period of one year.
Through interim relief, it is given that the provisional attachment order would stay. Leave to Leave to join the concerned adjudicating officer at Udaipur as the additional respondent is granted, as prayed for. Amendment in the cause title be made within a period of one week, the bench said.
