Assessee Made PreDeposit of 10% of Disputed Tax Under Section 107(6)Validity of Provisional Attachment Under Section 83CA. Satyadev Purohit

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The Tax Publishers GST--Provisional Attachment Assessee Made Pre-Deposit of 10% of Disputed Tax Under Section 107(6)--Validity of Provisional Attachment Under Section 83 CA. Satyadev Purohit The learned author seeks to examine an issue as to whether where the assessee has made pre-deposit of 10% in terms of sub-section (6) of section 107 as a condition for filing appeal before the Appellate Authority, the GST department can continue the provisional attachment of the immovable property of the assessee. The related issue is being discussed in the light of a recent Himachal Pradesh High Court decision in the case of Skylight Man Power & Hospitality Services v. CST & Ex & Ors., CWP 7272 of 2022, decided on 10-01-2023. 1. Relevant statutory provisions Section 83 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with provisional attachment to protect revenue in certain cases. As per sub-section (1) of section 83 of the CGST Act, where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Provisional Attachment

Assessee Made Pre-Deposit of 10% of Disputed Tax Under Section 107(6)--Validity of Provisional Attachment Under Section 83

CA. Satyadev Purohit

The learned author seeks to examine an issue as to whether where the assessee has made pre-deposit of 10% in terms of sub-section (6) of section 107 as a condition for filing appeal before the Appellate Authority, the GST department can continue the provisional attachment of the immovable property of the assessee. The related issue is being discussed in the light of a recent Himachal Pradesh High Court decision in the case of Skylight Man Power & Hospitality Services v. CST & Ex & Ors., CWP 7272 of 2022, decided on 10-01-2023.

1. Relevant statutory provisions

Section 83 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with provisional attachment to protect revenue in certain cases. As per sub-section (1) of section 83 of the CGST Act, where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.