2023 (9) TMI 37 - HC - GST

Maintainability of appeal - Validity of provisional attachment order - HELD THAT - The Supreme Court in M/S RADHA KRISHAN INDUSTRIES VERSUS STATE OF HIMACHAL PRADESH ORS. 2021 (4) TMI 837 - SUPREME COURT has expressed in no uncertain terms that once a final order of assessment is passed, in that case under Section 74 of the Himachal Pradesh Goods and Services Tax Act, the order of provisional attachment must cease to subsist. In the present case, the order-in-original has also been passed under Section 74 of the CGST Act - that being the position, there are no justification in continuing with the impugned orders of attachment. The impugned orders of attachment dated 15.07.2022 passed by respondent No. 1 are hereby set aside - Petition allowed.

Summary

Issues involved:
The judgment involves the provisional attachment orders dated 15.07.2022 passed by respondent No. 1 u/s 83 of the Central Goods and Services Tax Act, 2017, challenged through a petition filed u/s Article 226 of the Constitution of India.

Provisional Attachment Orders:
The provisional attachment orders dated 15.07.2022 provisionally attached the petitioner's bank accounts and properties, including specific details of the attached assets like bank account numbers and immovable properties with their respective values.

Legal Proceedings:
After the issuance of notice on 13.09.2022, respondents No. 1 and 2 filed a counter affidavit justifying the provisional attachment. In response, the petitioner filed a rejoinder affidavit and submitted the order-in-original dated 15.12.2022 passed by respondent No. 2, against which the petitioner has filed an appeal currently pending.

Applicability of Legal Precedent:
The petitioner argued that the situation in the present case aligns with the decision of the Supreme Court in Radha Krishan Industries v. State of Himachal Pradesh 2021, emphasizing the importance of compliance with the provisions of the law.

Court's Decision:
After considering the submissions and the legal provisions, the Court noted that the final order-in-original was passed under Section 74 of the CGST Act, similar to the legal context in the Radha Krishan Industries case. Consequently, the Court found no justification to continue with the impugned provisional attachment orders and set them aside, quashing the attachments.

Final Ruling:
The High Court allowed the writ petition, setting aside the provisional attachment orders dated 15.07.2022 passed by respondent No. 1. The miscellaneous applications pending were closed with no order as to costs.