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Delhi High Court - Orders

M/S Merlin Facilities Pvt. Ltd vs Union Of India & Ors on 8 May, 2023

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                          $~53
                          *       IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +       W.P.(C) 5931/2023, CM APPL. 23273/2023 & CM
                                  APPL. 23274/2023

                                  M/S MERLIN FACILITIES
                                  PVT. LTD.                               ..... Petitioner
                                                Through:            Mr.      Vineet      Chadha,
                                                                    Mr. Saumitri Pradhan, Mr.
                                                                    Pavit Singh, Mr. Vivek
                                                                    Chaurasia & Mr. Rahul
                                                                    Gaur, Advs.

                                                    versus

                                  UNION OF INDIA & ORS.                   ..... Respondents
                                                    Through:        Mr. Ravi Prakash, CGSC
                                                                    with Ms. Seema Singh,
                                                                    Ms. Usha Jamnal, Mr.
                                                                    Farman Ali & Mr. Astu
                                                                    Khandelwal, Advs. for R1
                                                                    Mr. Harpreet Singh, Sr.
                                                                    SC (through VC) with Ms.
                                                                    Suhani Mathur & Mr. Jatin
                                                                    Kumar Gaur, Advs.

                                  CORAM:
                                  HON'BLE MR. JUSTICE VIBHU BAKHRU
                                  HON'BLE MR. JUSTICE AMIT MAHAJAN
                                                    ORDER

% 08.05.2023

1. The petitioner has filed the present petition, inter alia, impugning an order dated 13.01.2021, passed under Section 83 of the Central Goods and Service Tax Act, 2017 (hereafter 'the CGST Act'), whereby the following bank accounts of the petitioner were provisionally attached:

                          Bank A/c No.           Maintained with

Signature Not Verified    046105500880           ICICI Bank Bahadurgarh Branch
Digitally Signed
By:HARMINDER KAUR         W.P.(C) 5931/2023                                             Page 1 of 3
Signing Date:09.05.2023
17:10:24
                                                         Delhi     Rohtak      Road,     NH-10,
                                                        Bahadurgarh, Haryana- 124507
                          01111132000386                Oriental bank of commerce (Now
                                                        merged with Punjab National Bank)
                                                        Railway       Road,       Bahadurgarh,
                                                        Haryana-124507
                          919020024648913               Axis Bank, GL 005 to 008, Ground
                                                        Floor, Cross Point, DLF Phase IV,
                                                        Gurugram, Haryana 122009


2. Learned counsel for the respondent submits that the inquiries have revealed that the petitioner is a non-existing person and has not cooperated in the investigation.

3. However, it is not disputed that no further orders have been passed for recovering any dues.

4. Section 83 (2) of the CGST Act reads as under:

"83. Provisional attachment to protect revenue in certain cases [(1) Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, 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 or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.] (2) 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)."

5. It is clear from the plain language of Section 83(2) of the CGST Act that the operation of an order provisionally attaching the bank account would cease to be operative after the expiry of the statutory period of one year.

6. In the aforesaid circumstances, the impugned order dated Signature Not Verified 13.01.2021 has ceased to be operative. Since the impugned order Digitally Signed By:HARMINDER KAUR W.P.(C) 5931/2023 Page 2 of 3 Signing Date:09.05.2023 17:10:24 is no longer operative, no orders are required for setting aside the same.

7. In so far as the petitioner's prayer for permitting the petitioner to operate its bank account is concerned, clearly; the impugned order would not impede the petitioner, in any manner, in operating its bank account. The concerned Bank shall proceed on the basis that the said order dated 13.01.2021 is no longer operative.

8. The petition is disposed of in the aforesaid terms.

VIBHU BAKHRU, J AMIT MAHAJAN, J MAY 8, 2023 "SS"

Signature Not Verified Digitally Signed By:HARMINDER KAUR W.P.(C) 5931/2023 Page 3 of 3 Signing Date:09.05.2023 17:10:24