Page 101 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] AMAZONITE STEEL PVT. LTD. v. UNION OF INDIA 203
35. Another point raised by the petitioner is with respect to non-service
of the fresh order personally upon the petitioner. Section 83 of the CGST Act,
2017 read with Rule 159 of the CGST Rules, 2017 does not provide for supply of
an order of provisional attachment of a bank account to the assessee concerned.
Accordingly, there is no requirement on the part of the respondent to serve such
an order under Section 83 personally upon the petitioners.
36. In light of the discussions made hereinabove, the third issue is decided
in favour of the Revenue.
37. I would like to summarize the issues that have been answered by
this Court for an easier understanding of the parties;
Issue A : Whether the Principal Additional Director General, DGGI
and Additional Director General, DGGI are competent to pass orders
under Section 83 of the CGST Act, 2017?
Answer : Both the officers that have passed the orders under Section 83
of the CGST Act, 2017 are competent to pass the same, and accordingly,
the issue is answered in favour of the Revenue.
Issue B : Whether an order passed under Section 83 of the CGST Act,
2017, remains valid after the expiry of one year from the date of the or-
der?
Answer : The actions of the respondent authorities in continuing with
the provisional attachment beyond the period of one year and without
informing the bank that the provisional attachment seizes to operate af-
ter a period of one year is an act that is reprehensible and absolutely con-
trary to law. Such an arbitrary action has clearly resulted in violation of
the petitioners’ rights for carrying on business under Article 19(1) of the
Constitution of India and under Article 300A of the Constitution of India
wherein the petitioners have been deprived of their property without au-
thority of law. Accordingly, the issue is answered in favour of the petitioners
and the respondent authorities are directed to pay costs of Rs. 5 lakhs to
each of the three petitioners. This amount should be deposited in the
current accounts that have provisionally attached within a period of four
weeks from date.
Issue C : Whether the authorities can issue fresh order of provisional
attachment/multiple orders under Section 83 of the CGST Act, 2017?
Answer : Section 83 empowers the competent authority to issue an or-
der for provisional attachment of property including bank accounts if it
is of the opinion that such step is necessary for protecting the interest of
the Revenue. It is palpably clear that Section 83(2) permits continuation
of a provisional attachment order for a period of one year from the date
of order after which it ceases to remain in effect. However, there is noth-
ing in the section which indicates that upon completion of the prescribed
period, a fresh order cannot be issued. To say this would amount to sup-
plying such requirements into the section which would go against the
well-established principles of interpretation of statutes. In the view point
of the Court, after the expiry of the time period, the appropriate authori-
ty may be of the opinion that such an attachment is further required to
protect the interest of Revenue, and may therefore, issue a fresh order
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