Delhi High Court rules on provisional attachment of bank accounts in GST case : Provisional Attachment Limited to Taxable Persons

by | Mar 29, 2023 | GST

Sakshi Bahl v. Principal Additional Director General

Case Number: W.P.(C) NO. 3986 OF 2023

Date of Judgement: 29/03/2023

Facts:

  • The petitioners were not taxable persons or persons specified in Section 122(1A) of the Act.
  • The funds received by them were return of advances and loans that were extended by the petitioners.
  • The petitioners had withdrawn Rs. 12.62 crores from the account of petitioner no. 1 in favour of M/s Hindustan Paper Machinery Industry or Mr. Rajiv Chawla.
  • The respondent had ordered provisional attachment of the savings bank accounts of the petitioners.
  • The petitioners challenged the impugned order on the grounds that it was without jurisdiction.

Decision: The court allowed the petitioners’ challenge to the impugned order, which provisionally attached their savings bank accounts. The court found that the power under Section 83 of the Act, to provisionally attach assets or bank accounts, is limited to attaching the bank accounts and assets of taxable persons and persons specified under Section 122(1A) of the Act. As the petitioners were not taxable persons, the impugned order could not be sustained.

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