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According to Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of a period of one year from the date the order was passed: High Court Of Delhi

The impugned provisional attachment order/letter is no longer effective. Accordingly, the Court directed the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from today was upheld by the High Court Of Delhi through the learned bench led by HON’BLE MR. JUSTICE MANMOHAN and HON’BLE MR. JUSTICE SUDHIR KUMAR JAIN in the case of M/S PASHUPATI PROPERTIES ESTATE PRIVATE LIMITED  Vs COMMISSIONER OF CENTRAL TAXES GST DELHI, (EAST) (W.P.(C) 3624/2022 & C.M.Nos.10740-10741/2022) on 08th March, 2022.

Brief facts of the case are that present writ petition has been filed challenging the letter dated 07th December, 2020 issued under Section 83 of the CGST Act, 2017 whereby the Respondent has directed the Bankers of the Petitioner to provisionally attach immovable property in the name of the Petitioner. Petitioner also seeks directions to the Respondent to release/de-freeze the immovable property of the Petitioner.

Learned standing counsel for the Respondent stated that after December, 2020, no fresh attachment order has been issued. He further clarified that no show cause notice under Section 74 of the CGST Act has been issued to the Petitioner till date.

The Court observed that “According to Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of a period of one year from the date the order was passed under Section 83(1) of the CGST Act.”

In view of facts and circumstances, court held that the impugned provisional attachment order/letter is no longer effective. Accordingly, the Court directed the Respondent to defreeze the bank accounts and release the immovable properties of the Petitioner not later than three days from today.

Click here to read the Judgement

Written by- Riya Singh, Legal Intern, Prime Legal

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