Authority to issue Provisional Attachment Order under CGST Act is solely vested with the Commissioner

Last updated: 31 August 2023

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Quick Summary

The Delhi High Court has ruled that only the Commissioner has the authority to issue provisional attachment orders for bank accounts under the CGST Act. In a case involving M/s. Vikas Enterprises, the court set aside an order issued by a Superintendent that had frozen the assessee's bank account. The court emphasised that such powers are vested solely with the Commissioner, citing a Supreme Court judgement, and even imposed costs on the Superintendent for exceeding his authority.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in M/s Vikas Enterprises v. Commissioner of Central Tax (GST), Delhi North & Anr. [W.P.(C) 9495 of 2023 dated July 31, 2023] set aside the letter issued by the Superintendent instructing to freeze the bank account of the assessee and held that the power to issue order of attachment of bank accounts under the Central Goods and Services Tax Act, 2017 ("the CGST Act") is only with the Commissioner and not below the rank of Commissioner can pass such order. Further, imposed the cost INR 5,000 on the Superintendent who issued such order.

Citation :
W.P.(C) 9495 of 2023 dated July 31, 2023

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