2022 (5) TMI 1439 - HC - GST

Seeking provisional release of the attachment - contention of the Petitioner is that the provisional attachment under section 83 of CGST Act, 2017 cannot be for a period of more than one year - Sub section (2) of Section 83 of CGST Act, 2017 - HELD THAT - The learned Counsel for the Petitioner assures this Court that the Petitioner would cooperate with the investigation and would attend the office of the Respondents as and when summoned and asked for. Sub section (2) of Section 83 of CGST Act, 2017 clarifies that every such provisional attachment shall cease to have effect after the expiry of period of one year from the date of the order made under sub section 1. The impugned order is under sub section 1 of section 83 of CGST Act, 2017. By operation of statute, provisional attachment ceases to take effect after a period of one year. Now the Petitioner as per order of this court, appeared before the authority. Statement is recorded. Assurance has been given that he will cooperate in the proceeding. Provisional attachment under order dated 13.07.2020 shall cease to take effect. Petition disposed off.

Summary

Issues:
1. Provisional release of attachment under section 83 of CGST Act, 2017.

Analysis:
The Petitioner sought provisional release of the attachment placed on their account under orders dated 22.05.2019 and 13.07.2020. The contention raised was that as per section 83 of the CGST Act, 2017, provisional attachment cannot exceed one year. The Respondents argued that the Petitioner was uncooperative in the investigation, leading the Court to direct the Petitioner to cooperate. The Petitioner eventually agreed to transfer the amount to the government and appeared before the authority as per the Court's order on 11.03.2022.

The Court noted the importance of the Petitioner's cooperation in the investigation process. The Petitioner's assurance, through their counsel, of full cooperation and willingness to attend the Respondents' office when summoned was considered. Section 83(2) of the CGST Act, 2017 specifies that provisional attachment ceases to have effect after one year from the date of the order under subsection 1. The impugned order in this case was under subsection 1 of section 83.

As a result of the statutory provision, the provisional attachment made on 13.07.2020 automatically ceased to have effect after one year. The Petitioner's appearance before the authority, recording of statement, and commitment to cooperate in the proceedings further solidified the decision. Consequently, the Court disposed of the Writ Petition without any costs being imposed.