Provisional bank account attachment lifted where no adjudication was pending and taxpayer undertook instalment payment of disputed tax.

Provisional attachment of a taxpayer's bank account was found unwarranted where only summons had been issued and no adjudication proceedings were pending. The taxpayer had also given an undertaking to pay the disputed tax in 15 monthly instalments without prejudice to its rights and contentions. In that factual setting, continued restraint on the account was held unnecessary, and the attachment was lifted with directions to release the bank account.

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Issues: Whether the provisional attachment of the petitioner's bank account was liable to be lifted in view of the undertaking to pay the disputed tax amount in instalments and the absence of any concluded adjudication.

Analysis: The petitioner invoked writ jurisdiction under Article 226 of the Constitution of India to challenge the provisional attachment of its bank account. The record showed issuance of summons under section 70(1) of the Central Goods and Services Tax Act, 2017 and section 70(1) of the Gujarat Goods and Services Tax Act, 2017, but no adjudication proceedings were pending. The petitioner filed an undertaking to pay the stated amount in 15 equal monthly instalments without prejudice to its rights and contentions in future proceedings. In that factual setting, continued attachment was not warranted.

Conclusion: The provisional attachment was set aside and the bank account was directed to be released; the petition was allowed.

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