Provisional Attachment of Property under GST
Bhaskar Thakkar
Passionate Golfer & Founder BT Associates (Indirect Tax - Consulting firm) & GSTidea.com (Knowledge Sharing Portal on GST)
Facts of the case
The petitioner is carrying out the academic programs in India of the University of Fraser Valley, Canada. The degrees awarded by the UFV, Canada are recognized by the Punjab University. A panchnama was prepared which shows that the authorized persons of the petitioner cooperated with DGGSTI and provided access to all the required documents. The Officer of the DGGSTI sent an e-mail to the petitioner that its bank account has been provisionally attached under Section 83 of the Central Goods and Services Tax Act, 2017.The objection was filed by petitioner against the provisional attachment of the bank account and it was submitted that it had to make the urgent payments, therefore, account may be released from the attachment.
Submission on behalf of the Petitioner
It was submitted that the order of provisional attachment has been passed under Section 83 of the Act on account of launching of the proceedings under Section 67 of the Act.
Section 83 of the CGST Act states that where during the pendency of any proceedings under section 62 or section 63 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed.
Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).”