Provisional Attachment Under CGST Act Section 83 Automatically Lapses After One Year, Mandating Account Release

The SC examined provisional attachment orders under Section 83 of the CGST Act. The court found that provisional attachment orders automatically cease after one year, directing bank authorities to release attached accounts. The petitioner's challenge was rendered infructuous due to the expiration of the one-year period, and the court disposed of the petition accordingly.

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Issues:
The judgment involves the correctness of provisional attachment orders under Section 83 of the CGST Act, challenges to multiple bank account and trade debt attachments, and the effect of Section 83(2) on the duration of provisional attachment orders.

Provisional Attachment Orders:
The petitioner challenged the provisional attachment of bank accounts and trade debts issued by the 1st Respondent under Section 83 of the CGST Act. The prayer sought to set aside multiple provisional attachment orders concerning different bank accounts and trade debts. The respondent argued that the provisional attachment orders cease to have effect after one year from the date of the order, as per Section 83(2) of the Act. Additionally, a Show Cause Notice had been issued to the petitioner, which was pending adjudication. The respondent contended that due to the expiry of the provisional attachment orders and the issuance of the Show Cause Notice, the writ petition had become infructuous.

Effect of Section 83(2):
The Court noted that as per Section 83(2) of the CGST Act, provisional attachment orders automatically cease to have effect after one year from the date of the order. In the present case, the period of one year from the passing of the provisional attachment orders had expired, rendering the impugned orders of attachment no longer in operation. The Court directed the bank authorities to take note of this and declared the provisional attachment orders at Annexures-A, A1, A2, A4, and A5 to be no longer in operation. Consequently, the petition was disposed of.

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