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SGST High Court Cases

GST – Section 83(2) of the CGST Act, 2017 – Extension of Provisional attachment, time limit – Interpretation of taxing statute - Challenge to orders of provisional attachment of properties issued under Section 83 of the CGST/SGST Act, 2017 - Whether the authorities can issue fresh orders of provisional attachment after the expiry of the one-year period specified in Section 83(2) of the CGST/SGST Acts – HELD - the plain language of Section 83(2) indicates that the provisional attachment cannot extend beyond the period of one year from the date of the first order of attachment – As distinct from the provisions of Section 281B of the Income Tax Act, 1961, the provisions of Section 83(2) of the CGST/SGST Acts do not even provide for the extension of the period of provisional attachment. Therefore, it must be held that on the plain meaning of the words used in Sub-section (2) of Section 83 of the CGST/SGST Acts, an attachment cannot extend beyond the period specified in Sub-section (2) of Section 83 - the provisions of Section 83(2) read with the provisions of Rule 159 of the CGST Rules, 2017 indicate beyond doubt that a provisional attachment under sub-section (2) of Section 83 cannot extend beyond a period of one year from the date on which it was first made. To accept the contention of the Revenue would be to do violence to the language of the statute and permit the Revenue to keep on issuing repeated orders of provisional attachment which would mean that the provisional attachment can continue for as long as the Revenue decides that it must continue. This, obviously, was not the intention of the legislature, for had the intention been different, the provisions of Sub-section (2) of Section 83 would have been worded differently - Revenue may be justified in contending that it is necessary that the law is equipped to deal with persons who engage in fraudulent activities to avoid the payment of tax legally due from them or engage in activities which would result in wrongful loss of revenue to the State Exchequer. However, it is not the duty of the Court to change the plain meaning of the statute and concede to the Revenue a right or authority which was never in the contemplation of the Legislature – the provisions of Section 83 do not authorize the issuance of a fresh order of attachment after the period specified in Section 83(2) of the CGST/SGST Acts - the orders issued by the authorities after the expiry of one year are without jurisdiction and quashed – the writ petition is allowed
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