Bank Account Freezing Order Under Section 83 of CGST Act Becomes Inoperative After One Year of Issue

HC ruled that a bank account freezing order under Section 83 of CGST Act becomes inoperative after one year. The court directed the bank to unfreeze the petitioner's account based on an outdated communication dated 10.03.2021. The judgment also mandated disclosure of any additional undisclosed orders affecting the account and preserved the petitioner's rights to seek further remedies.

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Issues involved:
The issue involved in the judgment is the freezing of a bank account under Section 83 of the Central Goods and Services Tax Act, 2017.

Judgment Details:

Issue 1: Freezing of Bank Account

The petitioner filed a petition seeking a writ/order to defreeze their bank account, which was frozen by the respondents under Section 83 of the CGST Act. The communication for freezing the account was dated 10.03.2021. However, more than a year had passed since the communication was issued, rendering it inoperative as per Section 83(2) of the CGST Act. The court declared that the order behind the communication is no longer valid, and the concerned bank was directed not to block the petitioner's account based on the outdated communication.

Issue 2: Operative Orders

The judgment clarified that any other orders affecting the petitioner's account, if existent but not on record, should be immediately communicated to the petitioner. The petitioner was granted the liberty to seek appropriate remedies concerning such undisclosed orders. The court preserved all rights and contentions of the petitioner in this regard.

The judgment concluded with an order for dasti under the signature of the Court Master, ensuring the implementation of the directives provided in the judgment.

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