Provisional attachment under GST lapses after one year unless renewed by a fresh valid order.

A provisional attachment of a bank account under the Central Goods and Services Tax Act, 2017 ceases to operate after one year under section 83(2), and the restraint cannot continue without a fresh valid attachment order. Where the attachment order had been issued on 27-01-2022 and no subsequent order was passed, the continued blocking of the account lacked legal foundation.

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Issues: Whether a provisional attachment of a bank account under the Central Goods and Services Tax Act, 2017 ceases to have effect after the expiry of one year from the date of the attachment order, and whether the bank account could continue to remain blocked in the absence of any fresh attachment order.

Analysis: The attachment was made under section 83 of the Central Goods and Services Tax Act, 2017. The statutory position under section 83(2) is that a provisional attachment ceases to have effect after the expiry of one year from the date of the order. It was not disputed that the attachment order was issued on 27-01-2022 and that no fresh attachment order was passed thereafter. On that basis, the continued restraint on the bank account had no legal foundation.

Conclusion: The provisional attachment had ceased to operate, and the bank account could not remain embargoed on the basis of the expired attachment order.

Ratio Decidendi: A provisional attachment under section 83 of the Central Goods and Services Tax Act, 2017 automatically lapses on expiry of the statutory period and cannot be continued without a fresh valid order.

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