2022 (9) TMI 263 - HC - GST

Provisional attachment order of immovable property - HELD THAT - A plain reading of the impugned attachment order dated 20.07.2022 would show, that Hy-Link Overseas Pvt. Ltd. is the registered taxable person under the provisions of the Central Goods and Services Tax Act, 2017 - That the subject property is not an asset of M/s Hy-Link Overseas Pvt. Ltd. List the matter on 26.09.2022.

Summary

Issues Involved:
Challenge to provisional attachment order dated 20.07.2022 regarding immovable property ownership rights and tax liabilities under the Central Goods and Services Tax Act, 2017.

Analysis:
1. The writ petition challenges the provisional attachment order dated 20.07.2022 concerning the immovable property known as B-81, Phase-II, Naraina Industrial Area, New Delhi. The petitioners claim ownership rights through a sale deed dated 05.12.2011. It is noted that one of the petitioners was a director in a company, Hy-Link Overseas Pvt. Ltd., which is a registered taxable entity under the CGST Act.

2. The petitioners argue that the impugned attachment order fails to consider that the subject property does not belong to Hy-Link Overseas Pvt. Ltd. and that the proposed tax liability against the petitioners is only Rs.29,700 each. They also highlight that a previous attachment order expired on 27.03.2020.

3. The petitioners contend that the impugned provisional attachment order violates Section 83 of the CGST Act. The court issues notice to the respondents, and respondent no.2 informs respondent no.1 about the registration of the subject property through sale deeds dated 10.06.2022, leading to the issuance of the attachment order.

4. The court directs respondent no.2 to retain the sale deeds in custody and schedules the next hearing for further proceedings. The parties are instructed to act based on the digitally signed copy of the order. The respondents are given an opportunity to file counter-affidavits if they intend to resist the writ petition.

Conclusion:
The judgment addresses the challenge to a provisional attachment order concerning ownership rights of an immovable property and tax liabilities under the CGST Act. The petitioners argue against the attachment order, claiming that the property does not belong to the registered taxable entity and that the tax burden is minimal. The court issues notice to the respondents, directs retention of sale deeds, and schedules the next hearing for further actions.