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Delhi High Court
M/S Tirupati Steel Through Proprietor … vs Union Of India & Ors on 25 August, 2025
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~73
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 25th August, 2025
+ W.P.(C) 12844/2025, CM APPL. 52483/2025 & CM APPL.
52484/2025
M/S TIRUPATI STEEL THROUGH PROPRIETOR
RAHUL MITTAL .....Petitioner
Through: Mr. Prabhat Kumar & Mr. Samarth,
Advs.
versus
UNION OF INDIA & ORS. .....Respondents
Through: Ms. Archana Gaur & Ms. Ridhima
Gaur, Advs. for R-3.
Mr. Harpreet Singh, SSC with Mr. Jai
Ahuja & Mr. Saindhya Sharma, Advs.
CORAM:
JUSTICE PRATHIBA M. SINGH
JUSTICE SHAIL JAIN
Prathiba M. Singh, J. (Oral)
1. This hearing has been done through hybrid mode.
CM APPL. 52484/2025 (for exemption)
2. Allowed, subject to all just exceptions. Application is disposed of.
W.P.(C) 12844/2025, CM APPL. 52483/2025
3. The present petition has been filed under Article 226 of the Constitution
of India, inter alia, challenging the impugned letter dated 27th October, 2023
in FORM GST DRC-22 issued by Additional Director General, Directorate of
GST Intelligence, Gurugram Zonal Unit, (hereinafter “DGGI”) by which the
bank account of the Petitioner has been provisionally attached under Section
83 of the Central Goods and Services Act, 2017 (hereinafter “CGST Act“). The
details of the bank account are as under:
● Bank: IDBI Ltd.
Signature Not Verified
Digitally Signed W.P.(C) 12844/2025 Page 1 of 4
By:DHIRENDER KUMAR
Signing Date:27.08.2025
18:38:54
● Branch: Ashok Vihar
● Account No.: 0201102000021775, Current IBKL0000201
4. It is stated that an investigation was initiated against the Petitioner under
Section 74 of the CGST Act on the ground of unpaid taxes by the Petitioner.
Pursuant to the investigation, the impugned letter was issued by DGGI to the
concerned Bank directing provisional attachment of the Petitioner’s bank
account.
5. The case of the Petitioner is that in view of Section 83(2) of the CGST
Act, the provisional attachment cannot continue beyond one year and the period
has already expired. The Section 83 of the CGST Act is extracted hereunder:
“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 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 year
from the date of the order made under sub-section
(1).”
6. This issue has already been considered by this Court in Krish Overseas
v. Commr., Central Tax, 2024 SCC OnLine Del 2865 wherein it has been
observed as under:
“4. Section 83 of the Act, under which the impugned
communication dated 14.08.2019 has been issued, readsSignature Not Verified
Digitally Signed W.P.(C) 12844/2025 Page 2 of 4
By:DHIRENDER KUMAR
Signing Date:27.08.2025
18:38:54
as under:–
“83. Provisional attachment to protect revenue
in certain cases. (1) Where during the
pendency of any proceedings under section 62
or section 63 or section 64 or section 67 or
section 73 or section 74, the Commissioner is
of the opinion that for the purpose 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
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 year from the date of the order made
under sub-section (1).”
5. Section 83 empowers the Commissioner to
provisionally attach any property including a bank
account, belonging to a taxable person for the purposes
of protecting the interest of the Government revenue, if
in the opinion of the Commissioner, it is necessary to do
so. Section 83(2) stipulates that every provisional
attachment ceases to have effect after the expiry of a
period of one year from the date said order is made
under Section 83(1) of the Act.
6. In view of Section 83(2) of the Act, the life of an order
of provisional attachment is only one year. In the
instant case, the impugned communication is dated
14.08.2019 and a period of one year has elapsed from
the issuance of the said communication. Consequently,
the impugned order dated 14.08.2019 has ceased to be
effective and cannot be any more implemented either
by the respondents No. 1 and 2 or the HDFC Bank i.e.,
respondent No. 3. Accordingly, it is declared that order
dated 14.08.2019 ceases to have effect. Consequently,
Signature Not Verified
Digitally Signed W.P.(C) 12844/2025 Page 3 of 4
By:DHIRENDER KUMAR
Signing Date:27.08.2025
18:38:54
respondent No. 3, HDFC Bank henceforth cannot
restrain operation of the bank account of the petitioner
based solely on the basis of order dated 14.08.2019.”
7. Insofar as the investigation itself is concerned, ld. Counsel for the
Petitioner submits that the same has culminated into the Show Cause Notice
dated 29th June, 2025.
8. In view of the mandate in Section 83(2) of the Act, the provisional
attachment cannot continue beyond one year and in the present case the same
has already lapsed. Accordingly, the provisional attachment of the Petitioner’s
bank account is lifted.
9. The concerned Bank Manager of IDBI Ltd., Ashok Vihar, New Delhi
shall de-attach/ de-freeze the concerned bank account and the Petitioner is
permitted to operate the same.
10. The respective Show Cause Notice proceedings shall, however, continue
in accordance with law.
11. The petition is disposed of in these terms. All pending applications, if
any, are also disposed of.
12. Copy of this order be communicated to the concerned Bank Manager,
IDBI Ltd., Ashok Vihar, New Delhi for necessary information and compliance.
PRATHIBA M. SINGH
JUDGE
SHAIL JAIN
JUDGE
AUGUST 25, 2025/Rahul/msh
Signature Not Verified
Digitally Signed W.P.(C) 12844/2025 Page 4 of 4
By:DHIRENDER KUMAR
Signing Date:27.08.2025
18:38:54
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