2024 (6) TMI 1152 - HC - GST

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

HC ruled that provisional attachment under Section 83 of Central GST Act, 2017 ceases after one year. The respondent admitted no fresh attachment order ... Provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 - cessation of provisional attachment after one year - operation of bank account subject to attachment - direction to bank to restore account operationProvisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 - cessation of provisional attachment after one year - operation of bank account subject to attachment - Provisional attachment of the petitioner's bank account dated 27.01.2022 has ceased to have effect and the bank must permit operation of the account. - HELD THAT: - The provisional attachment order impugned was issued on 27.01.2022. It was conceded by learned counsel for the respondents that no fresh attachment order has been issued since that date. In terms of the statutory regime governing provisional attachments under Section 83, the provisional attachment ceases to have effect after the expiry of one year from the date the order is made. Applying that principle to the admitted facts, the Court held that the provisional attachment dated 27.01.2022 has expired and therefore no longer binds the petitioner or the bank. Consequently, any embargo placed on the account based solely on that expired provisional attachment cannot be sustained. [Paras 4, 5]Provisional attachment dated 27.01.2022 has ceased; the bank is directed to forthwith permit operation of the account and not impose any embargo based solely on that order.Final Conclusion: Writ petition allowed; provisional attachment of the petitioner's bank account dated 27.01.2022 is held to have ceased and the respondent bank is directed to immediately restore operation of the account; petition disposed of. Issues Involved:Challenge to provisional attachment order under Section 83 of the Central Goods and Service Tax Act, 2017.Analysis:The judgment pertains to the challenge against an attachment order passed under Section 83 of the Central Goods and Service Tax Act, 2017, provisionally attaching a specific bank account. The petitioner contested the attachment, citing Section 83(2) of the Act, which states that a provisional attachment ceases to have effect after one year from the date of the order. The respondent admitted that the provisional attachment order was issued on a particular date and no fresh attachment order had been issued thereafter.The court, considering the submissions, allowed the petition, ruling that the provisional attachment of the bank account in question had ceased to have effect as per the provisions of the Act. Consequently, the respondent bank was directed to immediately allow the operation of the bank account without any restrictions based solely on the provisional attachment order issued on 27.01.2022. The judgment concluded by disposing of the petition in the terms mentioned above.This judgment highlights the importance of adherence to statutory provisions governing provisional attachments under the Central Goods and Service Tax Act, 2017. It emphasizes that such attachments have a limited duration and cease to be valid after the specified period unless a fresh order is issued. The court's decision ensures that the petitioner's bank account is no longer subject to the provisional attachment and must be made fully operational by the respondent bank without any hindrance.