Court directs release of bank account attachment, restrains recovery proceedings, and clarifies CGST Act provisions.

The Court ruled in favor of the petitioner, directing the Joint Commissioner to inform the petitioner's banker that the provisional attachment order on the bank account was no longer valid. The Court emphasized the need for prompt action and restrained the respondents from initiating further recovery proceedings since the petitioner had made a pre-deposit as required by the law. The Court granted relief to the petitioner, clarifying the legal aspects related to provisional attachment, termination of proceedings, and the stay on recovery proceedings under the CGST Act.

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Issues:
1. Provisional attachment of bank account under Section 83(1) of the CGST Act.
2. Delay in lifting the provisional attachment order.
3. Legal validity of the provisional attachment order after the termination of proceedings.
4. Stay on recovery proceedings after depositing a pre-deposit amount under Section 107(6) of the CGST Act.

Analysis:
1. The petitioner's bank account was provisionally attached by the Joint Commissioner under Section 83(1) of the CGST Act due to pending proceedings under Section 67 of the Act. The petitioner challenged the delay in lifting the attachment order despite the termination of proceedings and argued that the order should cease to exist by operation of law after one year.

2. The Court noted that the proceedings had ended, and the petitioner had deposited a pre-deposit amount in compliance with Section 107(6) of the CGST Act. The Joint Commissioner failed to address the legal issue raised by the petitioner, leading to the conclusion that the attachment order should no longer be in force.

3. In the judgment, the Court directed the Joint Commissioner to immediately inform the petitioner's banker that the attachment order was no longer valid, allowing the petitioner to operate the bank account within seven days. The Court emphasized the need for prompt action in this regard.

4. Additionally, the Court invoked Section 107(7) of the CGST Act, which stays recovery proceedings for the balance amount once the pre-deposit has been made. Since the petitioner had deposited a specific amount and provided acknowledgment, the respondents were restrained from initiating further recovery proceedings until the appeal was finally disposed of.

5. The Court allowed the writ petition, granting relief to the petitioner, and emphasized that no costs were to be incurred. The judgment provided clarity on the legal aspects surrounding provisional attachment, termination of proceedings, and the stay on recovery proceedings after making a pre-deposit under the CGST Act.

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