Provisional attachment of bank accounts under GST challenged, with interim access allowed subject to the writ petition outcome.

Provisional attachment of bank accounts under the CGST framework was challenged on the basis of procedural safeguards and the request for interim access to the accounts pending the writ petition. The HC issued notice and called for a reply, while protecting the sums lying in the attached accounts as on the date of attachment by directing that neither side withdraw or utilise them. At the same time, the petitioner was permitted to operate the bank accounts subject to the final decision in the writ petition, preserving both the disputed funds and limited account access during the pendency of the matter.

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Issues: Whether the provisional attachment of the petitioner's bank accounts under the Central Goods and Services Tax Act, 2017 and the allied procedural safeguards warranted interim interference, and whether the petitioner should be permitted to operate the accounts pending disposal of the writ petition.

Outcome: Notice issued. Reply to be filed. In the meanwhile, the amounts lying in the provisionally attached bank accounts as on the date of attachment were directed not to be withdrawn or utilised by either side, and the petitioner was permitted to operate the bank accounts subject to the decision of the writ petition.

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