Orissa HC disposed writ petition by directing assessee to file an objection against the order of provisional attachment to the Commissioner

Case Details: Shri Radha Raman Alloys (P.) Ltd. v. Union of India - [2021] 130 taxmann.com 500 (Orissa)

Judicial  and Counsel Details

• • Dr. S. Muralidhar, CJ and S.K. Panigrahi, J.
  • B. Nayak, Adv. for the Petitioner. 
  • Ch. S. Mishra, Adv. for the Respondent.

Facts of the Case

The provisional attachment order was issued by the Deputy Director, Directorate General of Goods and Services Tax, Rourkela and over draft bank account of the petitioner was attached under section 83 of the Central GST Act. The petitioner filed writ petition seeking direction to operate the over draft account.

The Honorable High Court observed that Section 83 of the CGST Act, 2017 empowers Commissioner to order the provisional attachment of any property, including a bank account, belonging to the taxable person. The Rule 159 of the CGST Rules, 2017 sets out the procedure to be adopted for issuing a provisional attachment order. Also, the Rule 159(5) provides that a person whose property is attached may, within seven days of such attachment, file an objection to the effect that the property attached was or is not liable to attachment. After such objection is filed, the Commissioner is required to offer the person objecting an opportunity of being heard and thereafter pass an appropriate order in FORM GST DRC-23, if he is of the view that the property is required to be released from attachment.

High Court Held

In the present case, the petitioner approached this Court without availing the aforementioned remedy available to it in law. Therefore, the Court directed the petitioner to file an objection to order of provisional attachment of its bank account and the Commissioner shall proceed to fix a date for hearing the petitioner and petition was disposed off.