SGST High Court Cases

GST – Scope of Section 83 of CGST Act, 2017 – Validity of continued provisional attachment of bank account in the grab of pendency of proceedings - whether Section 83 contemplates a continued attachment of bank accounts for several years - HELD - the provisional attachment envisaged is for the protection of revenue - Chapters XII, XIV and XV of the CGST Act, 2017 encompass all proceedings from inspection till assessment - the proceedings cannot be kept pending endlessly such that attachments of bank accounts traverse three to four years seamlessly - though it is the case of the respondents that the delay is on account of the non-response of the petitioner to show-cause notices, however, the respondents are well aware of the procedure set out under statute, and have to adhere to the same in a timely fashion, in accordance with law - In the present case, the SCN has been issued only on 08.10.2022 in respect of an inspection that had transpired in January, 2019 - the purpose of Section 83 which is stated to be ‘provisional attachment to protect revenue in certain cases‘ cannot be deployed so as to work against the assessee continuously for several years as has happened in the present case – the delay of nearly four years in issuing show-cause notice cannot be a reason to continue an attachment under Section 83 of the Act, which itself is provisional in nature -Section 83 must be resorted to in appropriate cases, ensuring with equal vigour that the Dept is proceeding in a timely manner, by issuing notice and finalizing proceedings in a time bound fashion - writ petition is allowed

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