No provisional attachment order allowed once final order in Form GST DRC-07 is passed: HC

Case Details: Mahavir Enterprise v. State of Gujarat - [2021] 132 taxmann.com 90 (Gujarat)

Judiciary and Counsel Details

• • J.B. Pardiwala and Ms. Vaibhavi D. Nanavati, JJ.
  • Avinash Poddar for the Petitioner. 
  • Chintan Dave, AGP for the Respondent.

Facts of the Case

The Competent Authority passed an order in Form GST DRC-07 on assessee and fixed its tax liability to tune of Rs. 3.56 crores. Thereafter, the authority passed an order under section 83 on assessee and provisionally attached its property. It challenged the provisional attachment and filed writ petition against the same.

High Court Held

The Honorable High Court observed that the only point of consideration in this case was whether the authority could have passed an order of provisional attachment of property under section 83 after passing order in form GST DRC-07. As per Section 79(3), if any amount of tax, interest or penalty is payable by a person to the Government under any of the provision of this Act or the Rule then such amount can be recovered by a proper Officer of State Tax or the Union Territory as the case may be, as if it were an arrear of State Tax or the Union Territory Tax. It is like recovery under the Bombay Land Revenue Code. This is possible or rather permissible only after proper attachment of any property of the assessee and it has nothing to do with the provisional attachment under section 83 of the Act. Therefore, it was held that order of provisional attachment in this case was without jurisdiction.