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TMI BlogProvisional attachment order of bank account under Section 83 effective only for one yearX X X X Extracts X X X X X X X X Extracts X X X X ..... Provisional attachment order of bank account under Section 83 effective only for one year - By: - CA Bimal Jain - Goods and Services Tax - GST - Dated:- 26-10-2024 - The Hon ble Telangana High Court in the case of M/S. AARUSH ENTERPRISES VERSUS THE COMMISSIONER - 2024 (7) TMI 666 - TELANGANA HIGH COURT set aside the order of provisional attachment of bank account under Section 83(1) of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Goods and Services Tax Act ( the CGST Act ) , taking into consideration sub-section (2) of Section 83 of the CGST Act , which clearly states that the provisional attachment passed under the aforesaid provision would be valid for a period of one year only. Facts: Aarush Enterprises ( the Petitioner ) has filed a writ petition against order dated May 19, 2023 ( the Impugned Order ) wherein the Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner s bank account was provisionally attached by way of exercising powers under Section 83 of the CGST Act The Petitioner contended that the said Impugned Order would lose its effect on completion of one year from the date of passing of the Impugned Order as per Section 83(2) of the CGST Act , and therefore, would lose its effect. Issue: Whether the bank account could be provisionally attached ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a period of more than one year? Held: The Hon ble Telangana High Court in the case of M/S. AARUSH ENTERPRISES VERSUS THE COMMISSIONER - 2024 (7) TMI 666 - TELANGANA HIGH COURT held as under: Noted that, language of the provision is a clear as the said provision clearly sounds mandatory in nature. Opined that, the Impugned Order ceased to have effect after passing of one year from the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passing of the Impugned Order. Held that, the Impugned Order for provisional attachment of Bank account cease to have any effect. Relevant Provision: Section 83 of the CGST Act Section 83: Provisional attachment to protect revenue in certain cases. (1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122 , in such manner as may be prescribed. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year from the date of the order made under sub-section (1). (Author can be reached at [email protected] ) - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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