ROSHNI SANA JAISWAL v. COMMISSIONER OF CENTRAL TAXES , GST DELHI (EAST)
High Court, Delhi
Rajiv Shakdher, Justice & Talwant Singh, Justice
ROSHNI SANA JAISWAL
v.
COMMISSIONER OF CENTRAL TAXES , GST DELHI (EAST)
W.P. (C) 2348/2021 & CM No. 6860/2021 dated 12.05.2021
Law : GST
Act Name : Central Goods & Services Tax Act, 2017
Relevant Section : Section 67 & 83
Rule Number : Rule 159
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : In favour of assessee
Provisional attachment of bank accounts – The petitioner, a former Director and shareholder (14.33%) in Milkfood Ltd., challenged the provisional attachment of her several bank accounts by the GST Department – The attachment was made during an investigation under Section 67 of the CGST Act against Milkfood Ltd., accused of availing fake ITC worth ₹85 crores – The petitioner had served as a mentor/advisor to the company and received ₹1.5 crores as consultancy fees in FY 2019–2020 – The petitioner argued that Section 83 allows attachment only of the property of a “taxable person”, which she was not, as Milkfood Ltd. was the registered entity – Held that: Allowed the writ petition, holding that the provisional attachment orders dated 07.12.2020 were without jurisdiction – Observed that, the petitioner was not a “taxable person” within the meaning of Section 2(107) of the Act, and therefore, Section 83 could not be invoked against her – Emphasized that, provisional attachment is a “draconian measure” and cannot be used against third parties unconnected to the taxable entity – The alternate remedy under Rule 159(5) was irrelevant since the initial exercise of power itself lacked jurisdiction – Quashed the attachment orders and directed communication of the order to the concerned banks.
Represented By:
Counsel for the Petitioner: Harsh Sethi, Advocate
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