2023 (10) TMI 857 - HC - GST

Provisional attachment of bank accounts under Section 83 CGST Act invalid; bank directed to lift restrictions.

The court resolved the petition by determining that the provisional attachment of the petitioner's bank accounts under Section 83 of the CGST Act was no ... Extension of attachment of bank accounts of petitioner - no attachment order, currently operative - whether the respondents can, by issuing the repeated orders under Section 83(1) of the CGST Act, extend the provisional attachment of the assets of the tax payer indefinitely? HELD THAT:- It is not considered necessary to examine the said question since the third order (order dated 08.08.2022) passed under Section 83 of the CGST Act is also no longer operative. The learned counsel for the respondents state that there is no order for provisional attachment of the petitioner’s bank account, which is currently operative - Thus, the petitioner’s grievance regarding the provisional attachment of his bank accounts does not survive. The present petition is disposed of by directing that the concerned bank shall not interdict the operation of the petitioner’s bank accounts [Account no. 04821000052381, 4821100050746 and 4821100050709] on the basis of the order dated 08.08.2022 or any other order passed by the GST Authorities prior to the said date. Issues involved:The judgment involves the provisional attachment of the petitioner's bank accounts under Section 83 of the Central Goods and Services Tax Act, 2017 (CGST Act). The main issue is whether repeated orders under Section 83(1) of the CGST Act can extend the provisional attachment of the taxpayer's assets indefinitely.Summary:Provisional Attachment Orders:The petitioner challenged an order dated 14.07.2020, passed by the Assistant Commissioner provisionally attaching the petitioner's current bank accounts and saving bank account maintained with Punjab and Sind Bank. The respondents issued subsequent orders before and after the expiry of one year from the date of the impugned order, with the latest order dated 08.08.2022, provisionally attaching the petitioner's bank accounts under Section 83 of the CGST Act.Legal Consideration:The key question raised was whether the respondents can extend the provisional attachment of the taxpayer's assets indefinitely by issuing repeated orders under Section 83(1) of the CGST Act. However, the judgment did not delve into this question as the third order (dated 08.08.2022) is also no longer operative, as confirmed by the respondents.Disposition of the Petition:Given that the third order is no longer in effect, the petitioner's grievance regarding the provisional attachment of bank accounts was deemed to be resolved. The court directed the concerned bank not to interdict the operation of the petitioner's bank accounts based on the order dated 08.08.2022 or any prior orders passed by the GST Authorities.Conclusion:The petition was disposed of with the directive for the concerned bank to refrain from interfering with the operation of the petitioner's bank accounts based on the expired order dated 08.08.2022 or any previous orders by the GST Authorities.This summary provides a detailed overview of the judgment, addressing the issues involved and the court's decision regarding the provisional attachment of the petitioner's bank accounts under the CGST Act.