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by determining that the provisional attachment of the petitioner's bank accounts under Section 83 of the CGST Act was no longer valid, as the latest order dated 08.08.2022 had expired. The court directed the concerned bank not to restrict the operation of the petitioner's bank accounts based on the expired order or any prior orders issued by the GST Authorities. Consequently, the petitioner's grievance was deemed resolved, and the petition was disposed of accordingly.

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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Given that the third order is no longer in effect, the petitioner's grievance regarding the provisional attachment of bank accounts was deemed to be resolved.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.

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