In the instant case of Rohini Jaiswal versus. CCT, the Hon’ble Delhi High court remarked that the concerned authorities cannot attach property including accounts details of an individual who is not a “taxable persons” under section 83 of the central goods and services tax act, 2017 (hereinafter referred to as “CGST Act, 2017”).
Subsequently, the direction was delivered in connection to a petition filed by a former company director who is facing procedural interrogation and investigation under Section 67 of the CGST Act, 2017. The contention was raised concerning orders of the Central taxes authority who attached several bank accounts of the petitioner.
In the due course of the hearing, the Hon’ble Delhi High Court observed that according to sub-section 1 of Section 83 of the CGST Act, 2017 which provides that provisional attachment can only be ordered concerning property that also includes the bank account of a “taxable person”.
Moreover, the Hon’ble court also observed that under Section 2(107), a taxable person is liable to be registered under CGST Act, 2017.
The Hon’ble court finds that concerning a taxable person under section 83 of the CGST Act, 2017 jurisdictional ingredient is missing.
However, the Hon’ble divisional bench consisting of Hon’ble Justice Rajiv Shakdher and Hon’ble Justice Talwant Singh to set forth the jurisdictional ingredient held that property of a non-taxable person cannot be attached under the CGST Act, 2017