GST Update

 Desk of CA. Praveen Sharma – 855 Series (CAPS) 

DELHI HIGH COURT IN THE CASE OF GMG Tradelink Pvt. Ltd.

Delhi High Court – GMG Tradelink Pvt. Ltd. v. DGGI (Per: Justice Prathiba M. Singh)

The petitioner challenged a provisional attachment order dated 6 March 2025 issued under Section 83 of the CGST Act, attaching its ICICI Bank accounts. It was argued that the Principal Additional Director General, DGGI, lacked authority to act as Commissioner for such attachment.

The department relied on Notification No. 14/2017–Central Tax dated 1 July 2017, which empowers the Principal ADG (DGGI) with the same powers as a Principal Commissioner under the CGST Act. The Court upheld this view, confirming the officer’s jurisdiction.

The petitioner was, however, allowed to file fresh objections, and the authority was directed to communicate reasons for attachment within two weeks. The Court preserved the petitioner’s right to pursue further remedies as per law and disposed of the petition with directions ensuring fairness and due process.

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CAPS