The Delhi High Court has ruled that the authorities cannot attach property including bank accounts of persons who are not “taxable persons”, under Section 83 of the Central Goods and Services Tax Act.
The petition was filed by a former director of the company facing investigations under Section 67 of the Act.
The petition was governed against orders by Commissioner of Central taxes, GST, which provisionally attached several bank accounts of the petitioner.
The Court observed that jurisdictional ingredient of a “taxable person” under Section 83 was missing in the present case.
The court took into the account that there was no material to connect the petitioner with the subject matter for which the company i.e the “taxable person” was being investigated under Section 67.
The court held that, “In the absence of such material, the impugned action concerning provisional attachment of the petitioner’s bank accounts, which is otherwise a “draconian” step, was unsustainable.”
Therefore, the provisional attachment orders were annulled.