Attachment Of Bank Accounts Is A Draconian Step, Attachment Is Subject To The Condition Mentioned U/s 83 Of GST Act: Delhi High Court
1 year, 11 months ago

Attachment Of Bank Accounts Is A Draconian Step, Attachment Is Subject To The Condition Mentioned U/s 83 Of GST Act: Delhi High Court

Live Law  

The Delhi High Court has held that attachment of bank accounts is a draconian step and the action can only be taken in case conditions specified in Section 83 of the GST Act, are fully satisfied.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that it is not open for the department to attach the bank accounts of other persons on the mere assumption that the funds were. The Delhi High Court has held that attachment of bank accounts is a draconian step and the action can only be taken in case conditions specified in Section 83 of the GST Act, are fully satisfied. The funds lying in the account of the petitioners belonged to the partners of M/s Hindustan Paper Machinery Industry and, therefore, had proceeded to attach their bank accounts. 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.

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History of this topic

Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account
3 months, 2 weeks ago

Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account

Live Law  

The Rajasthan High Court stated that the provisional attachment under Section 83 of the CGST Act ceases after one year and cannot be attached again without giving fresh reasons. The Division Bench, consisting of Chief Justice Manindra Mohan Shrivastava and Justice Ashutosh Kumar, was dealing with a case in which the assessee challenged the department's attachment of their bank account …

Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account
3 months, 2 weeks ago

Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account

Live Law  

The Rajasthan High Court stated that the provisional attachment under Section 83 of the CGST Act ceases after one year and cannot be attached again without giving fresh reasons. The Division Bench, consisting of Chief Justice Manindra Mohan Shrivastava and Justice Ashutosh Kumar, was dealing with a case in which the assessee challenged the department's attachment of their bank account …

Provisional Attachment Of Bank Accounts Adversely Impact Assessee’s Business: Delhi High Court Imposes Rs. 5k Cost On Superintendent Anti-Evasion
1 year, 7 months ago

Provisional Attachment Of Bank Accounts Adversely Impact Assessee’s Business: Delhi High Court Imposes Rs. 5k Cost On Superintendent Anti-Evasion

Live Law  

The Delhi High Court has imposed a cost of Rs. 5,000 on the department and observed that the provisional attachment of bank accounts adversely impacts the assessee’s business.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the communication seeking to place a debit freeze on the petitioner’s account emanated from Superintendent Anti-Evasion and not from. 5,000 …

Attachment By Tax Dept. Subsequent To A Mortgage Favouring Secured Creditors Has No Legs: Madras High Court
2 years, 3 months ago

Attachment By Tax Dept. Subsequent To A Mortgage Favouring Secured Creditors Has No Legs: Madras High Court

Live Law  

The Madras High Court has held that the orders of attachment passed by the Tax Recovery Officer or Income Tax Department were subsequent to the mortgage created in favour of the secured creditors and have no legs.The division bench of Justice R. Mahadevan and Justice Mohammed Shaffiq has observed that even if recovery proceedings are quashed for any reason, the …

Claim Of Secured Creditor Under SARFAESI Act Not Affected By Attachment Under Karnataka Protection Of Deposits Act: High Court
2 years, 7 months ago

Claim Of Secured Creditor Under SARFAESI Act Not Affected By Attachment Under Karnataka Protection Of Deposits Act: High Court

Live Law  

The Karnataka High Court has held that the attachment of a secured asset under the Karnataka Protection of Interest of Deposit in Financial Establishment Act, 2004, would have no priority over the claim of the Bank, to recover dues made under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. A single judge bench of …

Form GST DRC-16 Merely Attaches Immovable Properties & Not Bank Account: Madras High Court Refuses To Quash Attachment Notice
2 years, 10 months ago

Form GST DRC-16 Merely Attaches Immovable Properties & Not Bank Account: Madras High Court Refuses To Quash Attachment Notice

Live Law  

The Madras High Court bench of Justice C. Saravanan has held that form GST DRC-16 merely attaches immovable properties. After discussing the case on merits, the single judge directed the petitioner to pay a sum of Rs.3,00,000 each in respect of each of the assessment orders on or before 05.01.2021, and on such payment, the orders were deemed to have …

Provisional Attachment Not To Hamper Normal Business Activities: Gujarat High court Quashes Attachment Order
2 years, 11 months ago

Provisional Attachment Not To Hamper Normal Business Activities: Gujarat High court Quashes Attachment Order

Live Law  

The Gujarat High Court bench of Justice J.B. Pardiwala and Justice Nisha M. Thakore has held that the provisional attachment should not hamper normal business activities of the taxable person. The assessee submitted that apart from the properties, the department has also seized the mobile phone, laptop, and other documents from the business premises of the writ applicants by passing …

GST Provisional Attachment Order Not Valid After Expiry Of 1 Year: Delhi High Court
2 years, 11 months ago

GST Provisional Attachment Order Not Valid After Expiry Of 1 Year: Delhi High Court

Live Law  

The Delhi High Court bench of Justice Manmohan and Justice Sudhir Kumar Jain has held that 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 of the CGST Act. The court noted that after the issuance of the letter dated December 7, …

GST - Provisional Attachment Power 'Draconian'; Not Intended To Authorize Commissioners To Make Preemptive Strikes On Assessee's Property: Supreme Court
3 years, 10 months ago

GST - Provisional Attachment Power 'Draconian'; Not Intended To Authorize Commissioners To Make Preemptive Strikes On Assessee's Property: Supreme Court

Live Law  

The Supreme Court has held that the power of provisional attachment under GST laws must be strictly construed, being a draconian power, and that the same should be exercised only on the basis of tangible material.The power to order a provisional attachment of the property of the taxable person including a bank account is draconian in nature and the conditions …

Attachment Of Pension Account By The IT Dept: Delhi HC Directs IT Dept To Consider The Representation Of The Debtor [Read Order]
4 years, 10 months ago

Attachment Of Pension Account By The IT Dept: Delhi HC Directs IT Dept To Consider The Representation Of The Debtor [Read Order]

Live Law  

Delhi High Court has directed the Income Tax Department to consider the representation of a debtor whose pension account has been attached by the IT Department. The Single Bench of Justice Sanjeev Sachdeva has directed the IT Department to consider the Petitioner's representation and pass an order within one week, in accordance with law. In the present writ petition, the …

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