2020 (9) TMI 211 - HC - GST

Provisional attachment of property - dispute was raised by the department with regard to the registration of the place of business which was changed during the course of time - Section 83 of the Central Goods and Services Tax Act, 2017 - HELD THAT - Despite revocation of the order of cancellation, the bank account provisionally attached by the order dated 06.09.2019 has not been released. The result is that the petitioner has not been able to operate his business account. It appears that there is a dispute with regard to payment of GST by the petitioner for the period of business prior to 06.09.2019. In view of the provisions in Section 83(2), it is observed that the provisional attachment order dated 06.09.2019 has outlived its life after a period of one year. The competent authority is directed to consider the grievances of the petitioner and pass a fresh order, keeping in mind the provisions of Section 83(2) and as per law - petition disposed off.

Issues:
1. Provisional attachment of property under Section 83 of the Central Goods and Services Tax Act, 2017.
2. Failure to release bank account despite revocation of registration cancellation.
3. Dispute regarding payment of GST prior to the provisional attachment order.
4. Survival period of provisional attachment order.
5. Failure of the Revenue department to provide necessary instructions.

Analysis:
1. The judgment addresses the issue of provisional attachment of property under Section 83 of the Central Goods and Services Tax Act, 2017. The petitioner challenged the provisional attachment of their business account by the competent authority to protect the revenue's interest. Subsequently, the registration cancellation of the firm was revoked, but the bank account remained attached, hindering the petitioner's business operations. The court noted that the provisional attachment order had exceeded its one-year validity period as per Section 83(2) of the Act.

2. The court highlighted the failure to release the bank account despite the revocation of registration cancellation. It emphasized that the provisional attachment order should have been lifted following the restoration of the firm's registration. The inability of the Revenue department to act promptly and provide necessary instructions was criticized for causing delays and harassment to the assessee, impacting the business environment adversely.

3. A dispute regarding the payment of GST for the period preceding the provisional attachment order was mentioned. The judgment noted that no order imposing tax or penalty had been issued against the petitioner. Despite this, the provisional attachment continued, affecting the petitioner's ability to operate the business account. The court directed the competent authority to address the petitioner's grievances and issue a fresh order in accordance with the law and Section 83(2) provisions.

4. The court specifically highlighted the survival period of the provisional attachment order under Section 83(2) of the Act. It emphasized that the attachment ceases to have effect after one year from the date of the order. In this case, the court observed that the provisional attachment order dated 06.09.2019 had surpassed its one-year validity, necessitating its release.

5. Lastly, the judgment criticized the Revenue department for its failure to provide necessary instructions promptly, affecting the judicial process and causing inconvenience to the assessee. The court stressed the importance of efficient revenue collection in accordance with the law to maintain a conducive business environment. The directive was issued for the competent authority to reevaluate the petitioner's case and issue a fresh order while adhering to Section 83(2) provisions.

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