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TMI Blog2023 (7) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... reby the provisional attachment made on 21st April 2022 is retained under Section 83 of the CGST Act. The petition is filed after the objections of the Petitioner to provisional attachment were disposed of under Rule 159(5) of the CGST Rules by the Respondents. 2. We have heard learned Counsel for the Petitioner and learned Counsel for the Respondents. 3. At the outset, the Respondents have raised a preliminary ground that the order disposing off objections under Rule 159(5) of CGST Rules attaching the bank account provisionally is an appealable order and, therefore, this Court should not entertain the petition. The Respondents have relied on Section 107 of the Act in support of the contention that the same is an appealable order. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect after the expiry of a period of one year from the date of the order made under sub-section (1)." 5. Section 83(2) provides that provisional attachment made under sub-section (1) of Section 83 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). In the instant case, the provisional attachment order was made on 21st April 2022 and period of one year from the said date expired on 21st April 2023. Therefore, in our view, the provisional attachment order dated 21st April 2022 ceases to have effect by operation of law and cannot continue to operate after 21st April 2023. In the case of Guru Nanak Motor House vs. Union of India 2021-TIOL-2017-HC-Mum-GST, this Court, afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under Section 83 in respect of this bank account and, thereafter, the Joint Commissioner (Investigation) has opined that this bank account is required to be attached. The said order sheet is dated 21st April 2022 and formed the basis for issue of first provisional attachment on 21st April 2022 and which, as observed above, has ceased to expire by operation of sub-section (2) of Section 83. 8. Thus, we do not find any fresh order having being passed by the Respondents to attach the bank account on 19th April 2023. In any view of the matter, mere notings in the file of the concerned Officer cannot constitute an order without a formal order as the law may mandate being passed and most importantly such order being communicated to the affecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... henticated copy of this order. 11. The writ petition stands allowed in the aforesaid terms. No order as to costs. Writ Petition No. 3744 of 2023 Heard learned Counsel for the Petitioner and learned Counsel for the Respondents. 2. The issue raised in this petition is identical to the issue raised in Writ Petition No. 3742 of 2023. 3. For the reasons stated in our judgment in Writ Petition No. 3742 of 2023, it is held that the communication dated 21st April 2022 (Exhibit "B" to the petition) provisionally attaching the Petitioner's bank account is rendered illegal and invalid by virtue of the provisions of Section 83(2) of the CGST Act. The extension of the provisional attachment by communication dated 19th April 2023 (Exhibit "G-1" to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of the revenue to provisionally attach any property, including bank account belonging to the taxable person or "any person" specified in Section 122(1-A) in such manner as may be prescribed. 4. The two persons referred to in Section 83(1) are (i) taxable person or (ii) any person specified in Section 122(1-A) of the Act. Therefore, in second limb the phrase "any person" would include non-taxable person. 5. Section 122(1-A) provides that any person, who retains the benefit of a transaction covered under clauses (i)(ii)(vii) or (ix) of subsection (1) and, at whose instance such transaction is conducted shall be liable to a penalty of a sum equivalent to the tax evaded or input tax credit availed of or passed on. In our view, thus the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. It does not contemplate of a situation where the person should be located within the State in which the transaction is carried out. Therefore, in our view, the Respondents have the jurisdiction to resort to the provisions of Section 83 of the Act with respect to the Petitioner located in Chennai. 6. In so far as the jurisdiction of the Commissioner to exercise powers under Section 83 is concerned, we may observe that the provisions of Section 83, which are to be read with Section 122(1-A), would be required to be read in the context of the legislation itself namely the CGST Act. As Section 1(2) would mandate, the CGST Act is operational throughout the country. This would have relevance in construing the jurisdiction of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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