Court allows challenge to provisional attachment of bank account under GST Act; directs immediate operation.

The court allowed the writ application challenging the provisional attachment of a bank account under Section 83 of the Gujarat Goods and Services Tax Act, 2017. The court directed the respondent, the State Bank of India, to allow the applicant to operate the bank account immediately as the one-year period for provisional attachment had lapsed. The court emphasized that such attachments cease to have effect after one year from the order date, highlighting the importance of adhering to statutory timelines and protecting the rights of affected parties.

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Issues:
1. Challenge to the order of provisional attachment of a bank account under section 83 of the Act.

Analysis:
The writ applicant, a proprietary concern, filed a writ application under Article 226 of the Constitution of India seeking the quashing of the notice of provisional attachment of a bank account and a direction to change the account status from 'on hold' to 'active'. The order of provisional attachment was issued under section 83 of the Gujarat Goods and Services Tax Act, 2017. The impugned order stated that proceedings had been initiated against the taxable person to determine the tax or other amounts due. The applicant was informed of the attachment by the State Bank of India. Section 83 allows the Commissioner to provisionally attach any property, including a bank account, during certain proceedings to protect government revenue. The provisional attachment ceases to have effect after one year from the date of the order.

The court noted that the provisional attachment of the bank account, in this case, was effective from a specific date mentioned by the counsel, which was more than a year ago. As per Section 83(2), the provisional attachment ceases to have effect after one year from the order date. Since the one-year period had elapsed, the court directed the respondent, the State Bank of India, to allow the writ applicant to operate the bank account immediately. The court concluded that no further adjudication was necessary on other contentions raised in the writ application, and therefore allowed the writ application, granting relief to the petitioner.

This judgment provides clarity on the duration of provisional attachment under Section 83 of the Act and emphasizes that such attachments cease to have effect after one year from the order date. It underscores the importance of adhering to statutory timelines and ensuring that the rights of the affected parties are duly recognized and upheld.

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