Principal Additional Director DGGI Empowered to Pass Order for Provisional Attachment of Bank Account Under Section 83
By: Admin | October 21, 2024
Category: Important Pronouncements
Read Time: 4 Minutes
The Hon’ble Delhi High Court in Nikhil Gupta v. Principal Additional Director General DGGI Gurugram Zonal Unit [W.P. (C) No. 10651 of 2024, dated August 02, 2024] affirmed that the Principal Additional Director, Directorate General of Goods and Services Tax Intelligence (DGGI), is empowered to issue an order for the provisional attachment of a bank account under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act).
Case Background:
The petitioner, Nikhil Gupta, filed a writ petition challenging the provisional attachment of his bank account, which was ordered by the Principal Additional Director of DGGI under Section 83 of the CGST Act. The petitioner also raised objections regarding the blocking of his Electronic Credit Ledger (ECL) and contended that only the Commissioner had the authority to pass such an order under Section 83(1) of the CGST Act. He argued that the order was issued without jurisdiction and without a reason to believe that it was necessary to protect the Government’s revenue.
Court’s Decision:
The Delhi High Court upheld the order, clarifying the following:
Authority to Pass Provisional Attachment Orders: Under Section 83(1) of the CGST Act, the Commissioner is empowered to pass provisional attachment orders. However, Section 3(d) of the CGST Act includes the Commissioner of Central Tax and Additional Director General of Central Tax among the officers authorized to exercise powers under the Act.
Empowerment by Notification: As per Notification No. 14/2017-Central Tax dated July 1, 2017, officers like the Principal Director General of Goods and Services Tax Intelligence (DGGI) are empowered to act as central tax officers, granting them authority to pass such orders.
The court found the petitioner’s arguments to be without merit, as the Principal Additional Director General of DGGI was authorized to issue the impugned order. The court directed the Commissioner to expedite the review of the petitioner’s objections against the provisional attachment order.
Key Provisions:
Section 83 of the CGST Act empowers the Commissioner to provisionally attach property, including bank accounts, to protect government revenue. The provisional attachment ceases after one year from the date of the order.
Notification No. 14/2017-Central Tax grants powers to officers within the Directorate General of Goods and Services Tax Intelligence, Directorate General of Goods and Services Tax, and Directorate General of Audit to act as central tax officers across India.
This decision reinforces the authority of high-ranking DGGI officials to secure government revenue through provisional attachments under the CGST Act.
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