Provisional Tax Attachment Under Section 83 CGST Lapses After One Year Without Fresh Order, Bank Account Restrictions Lifted

HC ruled that provisional attachment under Section 83 of CGST Act expires after one year if no fresh order is issued. Court directed respondent bank to immediately lift restrictions on petitioner's bank account, finding the original attachment order had lapsed due to lack of renewal within statutory timeframe.

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Issues:
Impugning attachment order under Section 83 of the Central Goods and Service Tax Act, 2017.

Analysis:
The petitioner challenged the provisional attachment order of their bank account under Section 83 of the Central Goods and Service Tax Act, 2017. The petitioner argued that as per Section 83(2) of the Act, the 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 specific date and no fresh attachment order had been issued thereafter.

The court considered the submissions and held that since no fresh attachment order had been issued after the initial one, the provisional attachment of the petitioner's bank account had ceased to have effect. Consequently, the court allowed the petition and directed the respondent bank to immediately allow the operation of the bank account without any restrictions based solely on the provisional attachment order dated a specific date.

In conclusion, the court disposed of the petition by declaring that the provisional attachment of the bank account had lapsed and directing the respondent bank to permit the operation of the account without any hindrance.

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