Madras HC: Officers Can't Attach Property Under GST If Assessee Commences Appeal Proceedings

In a recent judgment, the Madras High Court examined the legality of provisional property attachment under Section 83 of the CGST Act, 2017, particularly in the case of TVL Maxtile AAC Block Vs State Tax Officer. The court addressed key aspects of tax demand and recovery procedures, emphasizing compliance with statutory provisions. \r

The case arose from a demand order issued due to a mismatch in Input Tax Credit (ITC) declared in GSTR-3B versus GSTR-2A. Despite the taxpayer's appeal and payment of a pre-deposit, the property was provisionally attached prematurely. \r

The High Court deemed such attachment contrary to statutory provisions, ordering its release and removal from encumbrance certificates. This landmark ruling underscores the importance of adherence to prescribed procedures in tax-related matters.