Facts of the Case

The petitioner, Pushpendra Singh, challenged an order of provisional attachment of his bank account dated 13th May, 2019, passed by the Superintendent, Range VI (CGST & CX), Shyambazar Division, Kolkata North Commissionerate, under the Central Goods and Services Tax Act, 2017. During the pendency of the writ petition, the GST authority also cancelled the petitioner's GST registration by an order dated 14th December, 2020, which was available on the official portal.

Issues Involved

  1. Whether a provisional attachment order under Section 83(2) of the CGST Act, 2017, continues to operate beyond one year from the date it is made, in the absence of any order of extension.
  2. Whether the concurrent cancellation of the petitioner's GST registration, effected during pendency of the writ petition, could be examined in the same proceeding.

Petitioner's Arguments

  • Under Section 83(2) of the CGST Act, 2017, no order of provisional attachment can survive beyond one year from the date it is made.
  • In the present case, one year from the date of the impugned attachment order (13.05.2019) had already expired on 30.05.2020, and the attachment had, by operation of law, ceased to have effect.

Respondent's Arguments

  • Learned counsel for the CGST authority brought to the Court's notice that, during pendency of the writ petition, the petitioner's GST registration had been cancelled by an order dated 14.12.2020, available on the official portal.
  • No submission was made disputing expiry of the one-year statutory period, nor was any order extending the attachment shown to the Court.

Court Order / Findings

  • The Court held that, in view of the statutory provision of Section 83(2) of the CGST Act, 2017, the impugned attachment order dated 13.05.2019 had lost its force since one year had expired without the GST authority showing any order extending it.
  • Held that the provisional attachment did not survive and had lost its force, with all legal consequences of that lapse to follow automatically.
  • On the registration-cancellation issue, the Court declined to interfere, holding it was not the subject matter of the writ petition, and left the petitioner free to pursue any remedy available in law regarding cancellation.
  • The writ petition was disposed of on these terms.

Important Clarification

  • A provisional attachment order under Section 83 of the CGST Act, 2017 automatically ceases to have effect on the expiry of one year from the date it is made, unless validly extended; the Department cannot treat it as continuing merely by inaction or silence.
  • Courts will not, in a petition confined to challenging an attachment order, go on to examine the validity of a separate, subsequent order (such as cancellation of registration) that is not the subject matter of that petition.

Sections Involved

  • Section 83, Central Goods and Services Tax Act, 2017 — empowers provisional attachment of property, including bank accounts, to protect government revenue; sub-section (2) caps the life of such an order at one year from the date it is made.

Decision – In Favour of

In favour of the Assessee. The provisional bank attachment was held to have lapsed and lost its force on expiry of one year, and the writ petition was disposed of on this footing; the separate order cancelling the petitioner's registration was left untouched.

Case Details

  • Court: High Court at Calcutta (Constitutional Writ Jurisdiction, Appellate Side)
  • Case No.: WPA No.13724 of 2019
  • CNR: Not available on record
  • Coram: Hon'ble Md. Nizamuddin, J.
  • Decision Date: 22.02.2022
  • Disposal Nature: Disposed of – impugned provisional attachment order held to have lapsed by operation of law

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