Holding

A provisional attachment order under section 83(1) ceases to have effect after one year and cannot be renewed or re‑issued, as the CGST Act provides no power for such renewal.

Summary

The appellant, Kesari Nandan Mobile, challenged two provisional attachment orders dated 13 November 2024 and 18 December 2024 issued by the Assistant Commissioner of State Tax under section 83 of the Central Goods and Services Tax (CGST) Act. The orders were issued after earlier attachment orders of October 2023 had automatically lapsed on expiry of one year as mandated by sub‑section (2) of section 83. The appellant argued that the CGST Act provides no power to renew or re‑issue a provisional attachment once it has ceased, and that the respondent’s so‑called ‘renewal’ was ultra vires. The Supreme Court examined the literal wording of section 83(2), the legislative intent to limit the draconian power to a one‑year period, and held that no provision exists for extension, renewal or re‑issuance, nor any executive instruction authorising it. Consequently, the Court declared the later orders invalid, ordered the bank accounts to be de‑freezed, and allowed the civil appeal.

Issues considered

Whether the Central Goods and Services Tax Act, 2017 or any other law permits issuance of a second provisional attachment order under section 83(1) after the first order has ceased by operation of section 83(2).
Whether the executive can interpret the statute to allow renewal of a provisional attachment in the absence of an explicit provision.

Legislation cited

Central Excise Act, 1944s. Section 11DDA
Central Goods and Services Tax Act, 2017s. 83(1), s. 83(2)
Central Goods and Services Tax Rules, 2017s. Rule 159(5)
Constitution of India
Customs Act, 1962s. Section 28BA
Income Tax Act, 1961

Headnote

Issue for Consideration Issue arose whether the Central Goods and Services Tax Act, 2017 or any other law in force permits issuance of a second provisional attachment order u/s.83(1) of the Act after the initial provisional attachment order by reason of efflux of a year from the date of its issuance, in terms of sub-section (2) thereof. Headnotes† Central Goods and Services Tax Act, 2017 – s.83 – Central Goods and Services Tax Rules, 2017 – r.159(5) – Provisional attachment to protect revenue in

Subjects

Second provisional attachment orderInitial provisional attachment orderCeasesEfflux of a yearProvisional attachment to protect revenueOperate bank accountsLiteral interpretationExtensionRenewalRe‑issuanceRevivalExecutive overreachTaxing statutesLegislative policyCGST ActRenewal of lapsed provisional attachment orderAbuse of lawPre‑emptive measureGovernment revenueut res magis valeat quam pereat

Judgment

[2025] 8 S.C.R. 936 : 2025 INSC 983

Kesari Nandan Mobile
v.
Office of Assistant Commissioner of State Tax (2),
Enforcement Division – 5
(Civil Appeal No. 9543 of 2025)
14 August 2025
[Dipankar Datta* and Augustine George Masih, JJ.]

Issue for Consideration
Issue arose whether the Central Goods and Services Tax Act, 2017
or any other law in force permits issuance of a second provisional
attachment order u/s.83(1) of the Act after the initial provisional
attachment order issued thereunder ceases, by reason of efflux of a
year from the date of its issuance, in terms of sub-section (2) thereof.

Headnotes†
Central Goods and Services Tax Act, 2017 – s.83 – Central Goods
and Services Tax Rules, 2017 – r.159(5) – Provisional attachment
to protect revenue in certain cases – Provisional attachment
orders issued against the appellant-taxpayer – Attachment
orders lapsed upon expiry of a year – Respondent-revenue
issued fresh provisional attachment orders terming it as a
‘renewal’ of the earlier orders – Writ petition by the appellant
that the subsequent provisional attachment orders be quashed
and the attachment lifted to enable the appellant operate its bank
accounts – High Court dismissed the writ petition – Correctness:
Held: Any order of provisional attachment, issued under subsection (1)
of s.83, would cease to have any effect after a period of a year –
Respondent could not have issued the impugned provisional
attachment orders upon the previous ones having ceased to have any
effect by operation of law after a year of its issuance – When a statute
does not provide for an extension, renewal, re-issuance, revival,
whatever be the nomenclature, the executive cannot overreach the
statute to do so – Parliament, being cognizant of other taxing statutes,
deliberately chose not to incorporate an extension provision in the
section, also carries considerable merit – Not to speak of a statutory
conferment of power, there is a complete absence of any executive
instruction consistent with the legislative policy and intendment of the
CGST Act authorizing renewal of a lapsed provisional attachment
* Author
[2025] 8 S.C.R. 937

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

order – Issuance of the provisional attachment orders by the
respondent appears to be indefensible – Conceding power to the
revenue to issue a fresh provisional order of attachment after the
initial order has lapsed by operation of law or to renew the same
would render the text of sub-section (2) of s.83 otiose and accepting
the reason assigned by the High Court would permit the revenue
to exercise a power which is not the statutory intendment – Thus,
no reason to read s.83 in a manner to confer any additional power
over and above the draconian power conferred by sub-section (1)
and upon lapse as ordained by sub-section (2) – Fresh issuance of
a provisional attachment order premised on substantially the same
grounds as the earlier one would be in disregard to the safeguard
provided in sub-section (2) – Repeated or continuous issuance of
a provisional attachment order under the garb of ‘renewal’ could
lead to a serious anomaly – Besides, a reading of the statute in its
entirety would reveal that the provisional attachment is a pre-emptive
measure to protect the interests of government revenue – It cannot
function as a recovery measure – Bank accounts attached by the
respondent stand de-freezed and be made operable forthwith.
[Paras 19, 29-32, 38-41]
Maxim – ut res magis valeat quam pereat – Meaning – Is an
interpretive doctrine that a legal text, specially a statute, should
be interpreted in a way that gives the document force rather
than makes it fail. [Para 30]

Case Law Cited
RHC Global Exports Private Limited & Ors. v. Union of India &
Ors., IA No. 249406 of 2023 in SLP (C) No(s). 15992-15994 of
2023 – relied on.
Additional Director General & Anr. v. Ali K. & Ors., 2025 SCC
OnLine Ker 758 – approved.
Radha Krishan Industries v. State of Himachal Pradesh [2021] 3
SCR 406 : (2021) 6 SCC 771; State of Odisha v. Satish Kumar
Ishwardas Gajbhiye (2021) 17 SCC 90; Rai Sahib Ram Jawaya
Kapur v. State of Punjab [1955] 2 SCR 225 : AIR 1955 SC 549;
Lohia Machines Ltd. v. Union of India [1985] 1 SCR 192 : (1985)
2 SCC 197; Pt. Banarsi Das Bhanot v. State of Madhya Pradesh
[1959] 1 SCR 427 : AIR 1958 SC 909; Sant Ram Sharma v. State
of Rajasthan [1968] 1 SCR 111 : AIR 1967 SC 1910 – referred to.
Merlin Facilities (P) Ltd. v. Union of India, 2023 SCC OnLine
Del 8730; Shrimati Priti v. State of Gujarat through the Assistant
938 [2025] 8 S.C.R.

Supreme Court Reports

Commissioner, 2011 SCC OnLine Guj 1869; Maniruddin Bepari v.
Chairman of the Municipal Commissioners, 1935 SCC OnLine Cal
296; Aashna Singhal v. Commr. of GST, 2024 SCC OnLine Del
4025; Arpit Trading Co. v. Commr. of GST, 2023 SCC OnLine Del
8712; Sutantu Care (P) Ltd. v. Superintendent of CGST, 2023 SCC
OnLine Del 8711; Futurist Innovation & Advertising v. Union of India,
2022 SCC OnLine Bom 2320; Yash Metal Impex (P) Ltd. v. Commr.
(CGST), 2022 SCC OnLine Bom 6818; Ravid Multiventures (P)
Ltd. v. Union of India, 2024 SCC OnLine Cal 1380 – referred to.

List of Websites
https://gstcouncil.gov.in/sites/default/files/Agenda/53rd_gstcm_
agenda.pdf

List of Acts
Central Goods and Services Tax Act, 2017; Central Goods and
Services Tax Rules; Constitution of India.

List of Keywords
Second provisional attachment order; Initial provisional attachment
order; Ceases; Efflux of a year; Provisional attachment to protect
revenue; Operate bank accounts; Literal interpretation; Extension,
renewal, re-issuance, revival; Executive; Overreach; Taxing
statutes; Legislative policy and intendment of the CGST Act;
Renewal of lapsed provisional attachment order; Abuse of law;
Renewal orders; Pre-emptive measure; Government revenue;
Maxim, ut res magis valeat quam pereat.

Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9543 of 2025
From the Judgment and Order dated 29.01.2025 of the High Court
of Gujarat at Ahmedabad in SCA No. 16339 of 2024

Appearances for Parties
Advs. for the Appellant:
Ashutosh Dave, Pradhuman Gohil, Mrs. Taruna Singh Gohil, Alapati
Sahithya Krishna, Ms. Hetvi Ketan Patel, Rushabh N. Kapadia,
Ms. Taniya Bansal.
Advs. for the Respondent:
Ms. Deepanwita Priyanka, Anuj Chaudhary.
[2025] 8 S.C.R. 939

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

Judgment / Order of the Supreme Court

Judgment

Dipankar Datta J.

1. This civil appeal, by special leave, takes exception to the judgment
and order dated 29th January, 20251 passed by a Division Bench of
the High Court of Gujarat at Ahmedabad2 dismissing a writ petition3
presented before it by the appellant.
2. The writ petition was directed against provisional attachment orders
dated 13th November, 2024 and 18th December, 2024 issued by the
respondent in purported exercise of power conferred by Section 83
of the Central Goods and Services Tax Act, 20174. The case run
by the appellant in its writ petition was that prior to issuance of the
impugned provisional attachment orders (dated 13th November, 2024
and 18th December, 2024), the respondent had issued provisional
attachment orders dated 17th October, 2023 and 26th October, 2023;
that the appellant had objected to such provisional attachment orders
by submitting a representation dated 1st May, 2024 as permitted by
Rule 159(5) of the Central Goods and Services Tax Rules, 20175;
that the respondent, despite receipt of such representation, did not
decide the same and kept the same pending; that, in terms of sub-
section (2) of Section 83 of the CGST Act, the provisional attachment
orders dated 17th October, 2023 and 26th October, 2023 lapsed upon
expiry of a year, i.e., with effect from 18th October, 2024, and 27th
October, 2024, respectively; and that, despite having no jurisdiction
conferred by law, the respondent proceeded to pass fresh provisional
attachment orders dated 13th November, 2024 and 18th December,
2024 terming it as a ‘Renewal’ of the earlier orders. Accordingly, it was
prayed that the provisional attachment orders dated 13th November,
2024 and 18th December, 2024 be quashed and set aside and the
attachment lifted to enable the appellant operate its bank accounts.

1 impugned order
2 Gujarat High Court
3 R/Special Civil Application No. 16339 of 2024
4 CGST Act
5 CGST Rules
940 [2025] 8 S.C.R.

Supreme Court Reports

3. The Gujarat High Court, while spurning the appellant’s challenge,
held in the impugned order that the law does not place any embargo
for a second provisional attachment order to be issued after lapse
of the earlier order and that the respondent, intending to safeguard
the interest of the revenue, did not commit any breach of Section
83 of the CGST Act.
4. Legality and correctness of such reasons are under assail in this
appeal.
5. Mr. Dave, learned counsel for the appellant, contends that the
impugned order is indefensible. The reason assigned by the High
Court is fundamentally flawed inasmuch as it travelled beyond the
legislative intent and purpose of securing the interest of the revenue,
overlooking that the life of a provisional attachment order is only for
a year from the date it is issued.
6. Drawing a parallel with the provisions of the Central Excise Act, 19446
and the Customs Act, 19627, Mr. Dave further contends that both
these taxing statutes provide for provisional attachment. In case of
the Excise Act, Section 11DDA provides for provisional attachment.
Sub-section (2) of Section 11DDA provides that the attachment
shall cease to have effect after 6 months from the date of the order.
This section further provides that the attachment may be extended,
such that the total period does not exceed two years. Similar to
the Excise Act, Section 28BA of the Customs Act also provides for
provisional attachment. Sub-section (2) of Section 28BA provides
that the attachment may be extended for such period, not exceeding
a cumulative period of two years. Juxtaposing these provisions
with Section 83 of the CGST Act, it is the contention of Mr. Dave
that there is no provision for extending the validity of a provisional
attachment order under the latter enactment after its lapse. Absent
such provision, and the attachment necessarily having lapsed after
one year, he contends that the respondent could not have attached
the bank accounts again.
7. Reliance is placed on an order dated 18th September, 2024, passed
by a co-ordinate Bench of this Court in RHC Global Exports Private

6 Excise Act
7 Customs Act
[2025] 8 S.C.R. 941

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

Limited & ors. v. Union of India & ors.8, wherein the attachment
of the bank account was lifted, and the account de-freezed, in view
of the one-year period having expired.
8. Next, reliance is placed by Mr. Dave on an order dated 17th December,
2018 on delegation of powers to be exercised under Section 83 of
the CGST Act. According to him, the appellant is covered by the
jurisdiction of Range-I, Ghatak-3, Ahmedabad but the respondent,
having jurisdiction at Vadodara, exercised jurisdiction beyond his
authority and as such, the action is null and void.
9. Mr. Dave then contends that perusal of the satisfaction notes prior to
issuance of the initial and the later provisional attachment orders would
show no significant differences. The appellant having objected to the
satisfaction note by its representation dated 1st May, 2024 in terms
of sub-rule (5) of Rule 159 of the CGST Rules, it was obligatory for
the respondent to dispose of such representation. However, failure or
omission to dispose of such representation on the one hand followed
by issuance of the impugned provisional attachment orders based
on more or less the same satisfaction note earlier issued amounts
to gross misuse of powers by the respondent.
10. Finally, Mr. Dave contends that there is a cleavage of opinion on
interpretation of Section 83 of the CGST Act. In Additional Director
General & anr. v. Ali K. & ors.9, the view taken by the High Court
of Kerala at Ernakulam10 is at variance with the view taken in the
impugned order by the Gujarat High Court as well as the decision of
the same High Court in Shrimati Priti v. State of Gujarat through
the Assistant Commissioner11, wherein a pari materia provision
(Section 45 of the Gujarat Value Added Tax Act, 2003) was considered.
The decision in Ali K. (supra) was delivered immediately after the
impugned order; hence, one does not find its reference there. Our
attention is drawn to paragraph 8 of the decision in Ali K. (supra),
wherein the Kerala High Court was not persuaded to concur with
Shrimati Priti (supra) and held that adopting the interpretation placed
by the Gujarat High Court would amount to conferring powers on the

8 IA No. 249406 of 2023 in SLP (C) No(s). 15992-15994 of 2023
9 2025 SCC OnLine Ker 758
10 Kerala High Court
11 2011 SCC OnLine Guj 1869
942 [2025] 8 S.C.R.

Supreme Court Reports

authorities to re-issue the order of attachment in respect of the same
property over which the earlier order of provisional attachment ceased
to have effect, which is not intended by the legislature. Further, the
Kerala High Court held that there is clear absence of any enabling
provision in Section 83 of the CGST Act, permitting the authorities to
re-issue the order of attachment which ceases to have life beyond
one year by operation of law.
11. Mr. Dave, therefore, prays that the impugned order be set aside
together with the provisional attachment orders dated 13th November,
2024 and 18th December, 2024 and the appellant be permitted to
operate his bank accounts.
12. Per contra, Ms. Priyanka, learned counsel for the respondent contends
that the appellant is involved in large scale financial fraud, causing
loss of revenue to the Government; that there exists an apprehension
that the dues assessed by the department may not be realized;
that there is also a reasonable apprehension that the appellant
may dispose of its assets, making the recovery of dues owed by
the appellant difficult. In such circumstances, having regard to the
fraud committed by the appellant and the minimal chance of recovery
of the outstanding dues, coupled with absence of any prohibition
imposed by the CGST Act, the earlier provisional attachment order
was renewed and that it does not suffer from any infirmity, far less
any illegality. Accordingly, she submits that the impugned provisional
attachment order cannot be challenged on the ground that the law
does not permit a renewal of the earlier order. It is, thus, prayed by
her that the appeal be dismissed.
13. Learned counsel appearing for the appellant and the respondent
have been heard and the materials placed on record are perused
together with the decisions cited at the bar.
14. The question of law arising for decision in this appeal is: whether the
CGST Act or any other law in force permits issuance of a second
provisional attachment order under sub-section (1) of Section 83 of
the CGST Act after the initial provisional attachment order issued
thereunder ceases, by reason of efflux of a year from the date of
its issuance, in terms of sub-section (2) thereof?
15. Our attention has been drawn to Section 83 of the CGST Act and
Rule 159 of the CGST Rules.
[2025] 8 S.C.R. 943

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

16. Section 83 of the CGST Act reads:
83. Provisional attachment to protect revenue in
certain cases
(1) 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.
(2) Every such provisional attachment shall cease to have
effect after the expiry of a period of one year from the date
of the order made under sub-section (1).
The manner and mode of attachment to be carried out under Section
83 of the CGST Act has been prescribed under Rule 159 of the
CGST Rules. Rule 159 of the CGST Rules reads:
Rule 159. Provisional attachment of property. -
(1) Where the Commissioner decides to attach any
property, including bank account in accordance with the
provisions of section 83, he shall pass an order in FORM
GST DRC-22 to that effect mentioning therein, the details
of property which is attached.
(2) The Commissioner shall send a copy of the order
of attachment in FORM GST DRC-22 to the concerned
Revenue Authority or Transport Authority or any such
Authority to place encumbrance on the said movable or
immovable property, which shall be removed only on the
written instructions from the Commissioner to that effect.
(3) Where the property attached is of perishable or
hazardous nature, and if the person, whose property has
been attached pays an amount equivalent to the market
price of such property or the amount that is or may become
payable by such person, whichever is lower, then such
property shall be released forthwith, by an order in FORM
GST DRC-23, on proof of payment.
944 [2025] 8 S.C.R.

Supreme Court Reports

(4) Where such person fails to pay the amount referred to
in sub-rule (3) in respect of the said property of perishable
or hazardous nature, the Commissioner may dispose of
such property and the amount realized thereby shall be
adjusted against the tax, interest, penalty, fee or any other
amount payable such person.
(5) Any person whose property is attached may file an
objection in FORM GST DRC-22A to the effect that the
property attached was or is Not liable to attachment, and
the Commissioner may, after affording an opportunity of
being heard to the person filing the objection, release the
said property by an order in FORM GST DRC- 23.
(6) The Commissioner may, upon being satisfied that the
property was, or is No longer liable for attachment, release
such property by issuing an order in FORM GST DRC-23.
17. The decision of this Court in Radha Krishan Industries v. State of
Himachal Pradesh12 was cited by the appellant before the Gujarat
High Court. At the outset, adverting to the observations made in
such decision is considered apposite. There, this Court considered
the ambit of section 83 and while underscoring the draconian nature
of the provision, observed thus:
49. Now in this backdrop, it becomes necessary to
emphasise that before the Commissioner can levy a
provisional attachment, there must be a formation of “the
opinion” and that it is necessary “so to do” for the purpose
of protecting the interest of the government revenue. The
power to levy a provisional attachment is draconian in
nature. By the exercise of the power, a property belonging
to the taxable person may be attached, including a bank
account. The attachment is provisional and the statute
has contemplated an attachment during the pendency of
the proceedings under the stipulated statutory provisions
noticed earlier. An attachment which is contemplated in
Section 83 is, in other words, at a stage which is anterior to
the finalisation of an assessment or the raising of a demand.

12 (2021) 6 SCC 771
[2025] 8 S.C.R. 945

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

Conscious as the legislature was of the draconian nature of
the power and the serious consequences which emanate
from the attachment of any property including a bank
account of the taxable person, it conditioned the exercise
of the power by employing specific statutory language
which conditions the exercise of the power. The language
of the statute indicates first, the necessity of the formation
of opinion by the Commissioner; second, the formation
of opinion before ordering a provisional attachment; third
the existence of opinion that it is necessary so to do for
the purpose of protecting the interest of the government
revenue; fourth, the issuance of an order in writing for
the attachment of any property of the taxable person;
and fifth, the observance by the Commissioner of the
provisions contained in the rules in regard to the manner
of attachment. Each of these components of the statute are
integral to a valid exercise of power. In other words, when
the exercise of the power is challenged, the validity of its
exercise will depend on a strict and punctilious observance
of the statutory preconditions by the Commissioner. While
conditioning the exercise of the power on the formation
of an opinion by the Commissioner that “for the purpose
of protecting the interest of the government revenue, it is
necessary so to do”, it is evident that the statute has not
left the formation of opinion to an unguided subjective
discretion of the Commissioner. The formation of the opinion
must bear a proximate and live nexus to the purpose of
protecting the interest of the government revenue.
(emphasis ours)

18. We fully endorse the view of the coordinate Bench in Radha
Krishan Industries (supra) insofar as sub-section (1) of Section
83 is concerned and observe that any further discussion in respect
thereof would be mere repetition of what has firmly been established.
However, what remains for consideration is how we interpret sub-
section (2) of Section 83 which did not emerge for consideration
there. A proper interpretation of sub-section (2) would necessarily
involve considering the severe or stringent nature of power conferred
by sub-section (1).
946 [2025] 8 S.C.R.

Supreme Court Reports

19. A plain reading of sub-section (2) of Section 83 could leave none in
doubt that any order of provisional attachment, issued under sub-
section (1), would cease to have any effect after a period of a year.
The provision, as it stands, does not require employment of other
interpretation rules beyond a literal interpretation to understand it.
The appellant, thus, seeks a declaration that there being no provision
for renewal, any such exercise is a nullity in law.
20. The legal question we are tasked to answer would require us to
consider whether it is open to an authority, which is required to
adhere to the CGST Act and the CGST Rules scrupulously while
exercising the draconian power of attaching a bank account, to act
in any manner for issuing a second provisional attachment order on
the specious ground that there is no embargo placed by the statute
in that behalf.
21. We may profitably refer to certain decisions of this Court for
guidance.
22. State of Odisha v. Satish Kumar Ishwardas Gajbhiye13 is not a
decision relatable to powers of taxation but to holding of a preliminary
inquiry, prior to initiation of disciplinary proceedings. However, we refer
to this decision because it has approvingly quoted the dictum of the
High Court at Calcutta of ancient vintage in Maniruddin Bepari v.
Chairman of the Municipal Commissioners14. We prefer to quote
the relevant passage from this Court’s decision hereunder:
12. ... A statutory authority can do only such acts which
are permissible under the statute and the authority cannot
be permitted to do something which is not provided in law.
This principle was formulated by the Calcutta High Court
nine decades ago in Maniruddin Bepari v. Chairman of the
Municipal Commissioners, in which it was inter alia held:
“It is a fundamental principle of law that a natural
person has the capacity to do all lawful things unless
his capacity has been curtailed by some rule of law.
It is equally a fundamental principle that in the case

13 (2021) 17 SCC 90
14 1935 SCC OnLine Cal 296
[2025] 8 S.C.R. 947

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

of a statutory corporation it is just the other way.
The corporation has no power to do anything unless
those powers are conferred on it by the statute which
creates it.”
(emphasis ours)

23. The principle of yesteryears, considered to be of immense substance
and worth that a statutory authority, without statutorily conferred
power, has no power to act in a particular manner, however, has to
be read, in the present context, in light of what the Constitution of
India ordains. Ever since the Constitution was enacted and with the
march of administrative law, we feel that the age-old principle may
not hold good in all circumstances.
24. An instructive passage is found in the decision of the Constitution
Bench of this Court in Rai Sahib Ram Jawaya Kapur v. State of
Punjab15 on the extent of executive powers that the Constitution
reserves for the Central/State executive to exercise. It reads:
7. Article 73 of the Constitution relates to the executive
powers of the Union, while the corresponding provision in
regard to the executive powers of a State is contained in
Article 162. The provisions of these articles are analogous
to those of Sections 8 and 49(2) respectively of the
Government of India Act, 1935 and lay down the rule of
distribution of executive powers between the Union and
the States, following, the same analogy as is provided in
regard to the distribution of legislative powers between
them. Article 162, with which we are directly concerned
in this case, lays down:
“Subject to the provisions of this Constitution, the
executive power of a State shall extend to the matters
with respect to which the legislature of the State has
power to make laws:
Provided that in any matter with respect to which the
legislature of a State and Parliament have power to

15 AIR 1955 SC 549
948 [2025] 8 S.C.R.

Supreme Court Reports

make laws, the executive power of the State shall
be subject to, and limited by, the executive power
expressly conferred by this Constitution or by any law
made by Parliament upon the Union or authorities
thereof.”
Thus under this article the executive authority of the State
is exclusive in respect to matters enumerated in List II
of Seventh Schedule. The authority also extends to the
Concurrent List except as provided in the Constitution
itself or in any law passed by Parliament. Similarly,
Article 73 provides that the executive powers of the Union
shall extend to matters with respect to which Parliament
has power to make laws and to the exercise of such
rights, authority and jurisdiction as are exercisable by
the Government of India by virtue of any treaty or any
agreement. The proviso engrafted on clause (1) further
lays down that although with regard to the matters in the
Concurrent List the executive authority shall be ordinarily
left to the State it would be open to Parliament to provide
that in exceptional cases the executive power of the
Union shall extend to these matters also. Neither of these
articles contain any definition as to what the executive
function is and what activities would legitimately come
within its scope. They are concerned primarily with the
distribution of the executive power between the Union
on the one hand and the States on the other. They do
not mean, as Mr Pathak seems to suggest, that it is only
when Parliament or the State Legislature has legislated
on certain items appertaining to their respective lists,
that the Union or the State executive, as the case may
be, can proceed to function in respect to them. On the
other hand, the language of Article 172 clearly indicates
that the powers of the State executive do extend to
matters upon which the State Legislature is competent
to legislate and are not confined to matters over which
legislation has been passed already. The same principle
underlies Article 73 of the Constitution. These provisions
of the Constitution therefore do not lend any support to
Mr Pathak’s contention.
[2025] 8 S.C.R. 949

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

25. This proposition finds considerable support from another Constitution
Bench decision of this Court in Lohia Machines Ltd. v. Union of
India16 wherein it was held that the legislature having exercised its
essential function, a certain margin of latitude is always allowed to
the executive in working out the details of exemption in a taxing
statute. This Court referred to Pt. Banarsi Das Bhanot v. State
of Madhya Pradesh17, to emphasize the inherent power of the
executive, where it ruled thus:
Now, the authorities are clear that it is not unconstitutional
for the legislature to leave it to the Executive to determine
details relating to the working of taxation laws, such as
the selection of persons on whom the tax is to be laid, the
rates at which it is to be charged in respect of different
classes of goods, and the like.
26. We understand the law to be clear that not all laws are provided by
statutory enactments and law making could extend to orders passed
by the executive in relation to matters where the Parliament/a State
Legislature has the authority to enact laws, and the Parliament or a
State Legislature, as the case may be, has even not enacted any
such law; but, importantly, the inherent executive power cannot be
exercised, in respect of any matter covered by statutory law/rules,
in a manner inconsistent therewith. While so, law is also well-settled
that the inherent executive power could be exercised to supplement
the statutory law, but not supplant it.
27. In Sant Ram Sharma v. State of Rajasthan18, a Constitution Bench
of this Court also ruled as follows:
7. ... It is true that there is no specific provision in the
Rules laying down the principle of promotion of junior or
senior grade officers to selection grade posts. But that does
not mean that till statutory rules are framed in this behalf
the Government cannot issue administrative instructions
regarding the principle to be followed in promotions of
the officers concerned to selection grade posts. It is true

16 (1985) 2 SCC 197
17 AIR 1958 SC 909
18 AIR 1967 SC 1910
950 [2025] 8 S.C.R.

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that Government cannot amend or supersede statutory
rules by administrative instructions, but if the rules are
silent on any particular point Government can fill up the
gaps and supplement the rules and issue instructions not
inconsistent with the rules already framed.
(emphasis ours)

28. Bearing these principles in mind, we now proceed to answer the
question noted in paragraph 14 above based on our understanding
that for an authority to exercise a power, it must either be empowered
by the statute or authorized by executive instructions; if the power is
not conferred by statute, executive instructions or any other instrument
which is law within the meaning of Article 13, it cannot be justified by
arguing that the exercised power is neither prohibited by the statute
nor by executive instructions.
29. Not to speak of a statutory conferment of power, there is a complete
absence of any executive instruction consistent with the legislative
policy and intendment of the CGST Act authorizing renewal of a lapsed
provisional attachment order. Viewed from either angle, issuance of
the provisional attachment orders by the respondent under challenge
before the Gujarat High Court appears to be indefensible as rightly
contended by Mr. Dave.
30. That apart, having regard to the draconian nature of power conferred
on the revenue by sub-section (1) of Section 83 of the CGST Act to
levy a provisional attachment, the terms of the entire section have
to be construed in a manner so that sub-section (2) of Section 83
is not effectively reduced to a dead letter. We are reminded of the
maxim ut res magis valeat quam pereat. It is an interpretive doctrine
that a legal text, specially a statute, should be interpreted in a way
that gives the document force rather than makes it fail. Conceding
power to the revenue to issue a fresh provisional order of attachment
after the initial order has lapsed by operation of law or to renew the
same would render the text of sub-section (2) of Section 83 otiose
and accepting the reason assigned by the Gujarat High Court would
permit the revenue to exercise a power which is not the statutory
intendment. We, therefore, see no reason to read Section 83 in a
manner to confer any additional power over and above the draconian
power conferred by sub-section (1) and upon lapse as ordained by
sub-section (2).
[2025] 8 S.C.R. 951

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

31. Moving further, fresh issuance of a provisional attachment order
premised on substantially the same grounds as the earlier one would
be in disregard to the safeguard provided in sub-section (2). The
age-old principle, that an act which cannot be done directly cannot
be done indirectly, would apply in its entirety. To permit any other
interpretation would result in an abuse of law and due process. If
we were to accept the reason assigned by the Gujarat High Court
in the impugned order that the law does not place any embargo,
it would stand to reason that the authority - not stopping after the
1st renewal order ceases to have effect in terms of sub-section (2)
of Section 83 - might continue to issue repeated renewal orders.
Repeated or continuous issuance of a provisional attachment order
under the garb of ‘renewal’ could lead to a serious anomaly. With
no change in circumstances, repeated orders in the garb of renewal
would be contrary to the plain reading of sub-section (2) and akin
to filling old wine in a new bottle.
32. Besides, a reading of the statute in its entirety would reveal that
the provisional attachment is a pre-emptive measure to protect the
interests of government revenue. It cannot function as a recovery
measure; for that, the statue has other provisions. Certainly, a
period of one year, as ordained by the legislature, is enough for the
revenue authorities to conclude its investigation; if not, the legislature
could have provided for a renewal or an extended period as in the
Excise Act and the Customs Act. Sub-section (2) of Section 83 does
not provide for any exception to the rule. Any explanation given
by the respondent for issuing a renewal would be in the teeth of
the established procedure. Once the inquiry culminates into a final
demand, recourse must be had to the provisions under the section
which provide for recovery of the assessed tax, penalty, interest,
etc. This also provides opportunity to the assessee to challenge the
same before the appropriate authority. Short-circuiting the procedure
by pursuing a provisional attachment as a means to recover the
tax due, as a natural consequence, would frustrate the intent and
purpose of the statute.
33. We have looked at the order passed by this Court in RHC Global
Exports Private Limited (supra). We are mindful of the fact that
the order sought to be relied upon was passed while disposing of
an interim application and that the special leave petition itself is
pending adjudication. However, nothing much turns on it. The view
952 [2025] 8 S.C.R.

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taken by this Court therein, though not based on elaborate reason,
has our respectful concurrence in view of our aforesaid discussions.
34. Noticing the argument of Mr. Dave of there being a cleavage of
opinion, we have read the decision of the Kerala High Court in
Ali. K. (supra). The view taken in Ali. K. (supra) appears to us to
be acceptable and we approve it.
35. In fact, despite the statute having provided for a lapse after one
year, it has been observed that debit-freeze continues for long after
that, compelling the citizens to approach the high courts for an order
seeking lifting of attachment which, by the statute, already stands
lifted. [See Aashna Singhal v. Commr. of GST19, Merlin Facilities
(P) Ltd. v. Union of India20, Arpit Trading Co. v. Commr. of GST21,
Sutantu Care (P) Ltd. v. Superintendent of CGST22, Futurist
Innovation & Advertising v. Union of India23, Yash Metal Impex
(P) Ltd. v. Commr. (CGST)24, Ravid Multiventures (P) Ltd. v.
Union of India25].
36. It would seem rather incongruous and redundant that parties must
approach the high courts to seek enforcement of a law already in
force. The deliberate non-compliance by the revenue to implement
statutory protection would undermine the rule of law and render
the action not only susceptible to vulnerability but also being set
at naught.
37. Prior to ending our discussion, it would be necessary to notice that
the challenge of the present nature has been recognised not just by
the constitutional courts but has been sought to be addressed by
the GST Council26 too in the agenda framed for its 53rd meeting27.
The issue has been addressed by the council as under:

19 2024 SCC OnLine Del 4025
20 2023 SCC OnLine Del 8730
21 2023 SCC OnLine Del 8712
22 2023 SCC OnLine Del 8711
23 2022 SCC OnLine Bom 2320
24 2022 SCC OnLine Bom 6818
25 2024 SCC OnLine Cal 1380
26 Council
27 https://gstcouncil.gov.in/sites/default/files/Agenda/53rd_gstcm_agenda.pdf; last accessed on 2nd
August, 2025.
[2025] 8 S.C.R. 953

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

Agenda Item 3(v): Clarification regarding restoration
of provisionally attached property.
4.30 The Pr. Commissioner, GST Policy Wing took up
the next agenda regarding provisional attachment of the
property of the taxpayers. He stated that Section 83(2) of
CGST Act, 2017 states that the provisional attachment shall
cease to have effect after the expiry of a period of one
year from the date of the order i.e. provisional attachment
order in the form of FORM GST DRC-22. However,
as per Rule 159(2) of CGST Rules, 2017, provisional
attachment of a property shall be removed only on the
written instructions from the Commissioner to that effect.
But, even after completion of 1 year, the property is not
released as the banks and other agencies with which
the property is provisionally attached unless they receive
written instructions from the Tax Authorities.
Therefore, it appeared that the CGST Rules, 2017 were not
in alignment with the CGST Act, 2017. This misalignment
between Rules and Act was observed by the Hon’ble
Delhi Court in the case of M/s. Balaji Enterprises vs. Pr.
ADG, DGGI and therefore, the Hon’ble Court had ordered
to adopt a procedure for defreezing the bank accounts.
4.31 He mentioned that the issue was deliberated by the
Law Committee and the Law Committee recommended
amendment in sub-rule (2) of rule 159 of CGST Rules and
in FORM GST DRC-22, as below to align the provisions
of CGST Rules with that of section 83 of CGST Act.:
Amendment in sub-rule (2) of Rule 159:
To insert the words “or on expiry of a period of one year
from the date of issuance of order in FORM GST DRC-
22, whichever is earlier,” after the words “to that effect”,
to clearly provide that order issued under FORM GST
DRC-22 shall cease to have effect after expiry of period
of one year from the date of issuance.
Amendment in FORM GST DRC-22:
To insert the words “This order shall cease to have effect,
on the date of issuance of order in FORM GST DRC-23
954 [2025] 8 S.C.R.

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by the Commissioner, or on the expiry of a period of one
year from the date of issuance of this order, whichever
is earlier.”
(emphasis in original)

38. The Council while being conscious of the difficulties, has recommended
necessary amendments to align the extant procedure under Rule 159
of the CGST Rules with the law. What is notable is the consciousness
of the Council too that a provisional attachment order would have
no life after a year. Nonetheless, it stands to reason that till such
time the amendments are carried out, actions to provisionally attach
properties of taxpayers must be implemented in strict compliance
with the statute.
39. The appellant’s argument that the Parliament, being cognizant of other
taxing statutes, deliberately chose not to incorporate an extension
provision in the section, also carries considerable merit. The procedure
of provisional attachment is not alien to tax jurisprudence. Such
pre-emptive measure can be found in several statutes, including
the Customs Act and the Excise Act, and the Income Tax Act, 1961
as well. Ergo, when the statue does provide for an extension, the
authority thereunder is free to do so, subject to such restrictions
as may be imposed. Conversely, when a statute does not provide
for an extension, renewal, re-issuance, revival — whatever be the
nomenclature — the executive cannot overreach the statute to do so.
40. Lastly, insofar as the issue of delegation and assumption of jurisdiction
as alleged by the appellant in concerned, we have not considered
the contention in view of the impugned provisional attachment orders
being liable to be set aside on the point of law discussed above.
41. For the foregoing reasons, the question in paragraph 14 is answered
in the negative. We hold that the respondent could not have issued the
impugned provisional attachment orders dated 13th November, 2024
and 18th December, 2024 upon the previous ones having ceased to
have any effect by operation of law after a year of its issuance. The
bank accounts attached by the respondent shall stand de-freezed
and be made operable forthwith upon production of a copy of this
judgment before the banks where the appellant maintains its accounts.
42. The civil appeal stands allowed on the above terms.
[2025] 8 S.C.R. 955

Kesari Nandan Mobile v. Office of Assistant Commissioner of
State Tax (2), Enforcement Division – 5

43. Before parting, it is necessary to observe that since the investigation
by the respondent is still underway, this order shall not preclude it
from conducting or taking further steps in accordance with law, and
the present order shall be restricted to the issue agitated herein.

Result of the case: Appeal allowed.

†
Headnotes prepared by: Nidhi Jain