Principal ADG Of GST Intelligence Can Order Provisional Attachment Of Trader's Bank Account: Delhi High Court

The Delhi High Court recently refused to interfere with an order passed by the Principal Additional Director General, Directorate General of GST Intelligence (DGGI) provisionally attaching the bank accounts of a trader.

The provisional attachment was challenged on the ground of competency of the officer to pass such an order.

Petitioner had argued that in terms of Section 83 of the Central Goods and Services Tax Act, 2017 only the GST Commissioner can order provisional attachment to protect revenue in certain cases.

For context, the provision stipulates— 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…

The Department however placed on record a Notification dated 1st July, 2017, issued by the Central Board of Excise and Customs to the effect that the Principal, Additional Director General, Goods and Services Tax Intelligence is equivalent to Principal Commissioner, Goods and Services Tax.

“In view of the aforesaid Notification dated 1st July, 2017, the above plea made by the Petitioner would not be sustainable,” a division bench of Justices Prathiba M. Singh and Shail Jain said.

It however directed the authority to communicate the reasons of provisional attachment to the Petitioner within two weeks.

Appearance: Mr. Yatharth Rohila, Mr. Nihal Singh Shekhawat and Ms. Kanak Kaushal, Advs. for Petitioner; Mr. Harpreet Singh, Sr. Standing Counsel with Ms. Suhani Mathur and Mr. Jai Ahuja, Advs. for Respondents

Case title: GMG Tradelink Pvt. Ltd. v. Directorate General Of GST Intelligence HQ & Ors.

Citation: 2025 LiveLaw (Del) 1508

Case no.: W.P.(C) 16259/2025

Click here to read order