GST input tax credit amendment required fresh reconsideration, and bank account attachment could not continue pending redetermination.

Amendment to Section 16 of the GST law was treated as having potential bearing on an earlier Section 73 determination, so the order was remitted for fresh reconsideration on the amended legal footing after hearing the taxpayer. Pending that reconsideration, continued bank account attachment under Form GST DRC-13 was found unwarranted because part of the liability had already been realised from the electronic credit ledger and the earlier decision was no longer final. The attachment notice was therefore quashed and the earlier order kept in abeyance until fresh adjudication.

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Issues: (i) Whether the order passed under Section 73 required reconsideration in view of the amendment to Section 16 of the GST law. (ii) Whether the bank account attachment by notice in Form GST DRC-13 could continue pending fresh decision.

Issue (i): Whether the order passed under Section 73 required reconsideration in view of the amendment to Section 16 of the GST law.

Analysis: The matter concerned a determination already made for the relevant tax period, but the legal position had changed because of the amendment introducing sub-sections (5) and (6) to Section 16. The Court noted that the amendment had potential bearing on the sustainability of the earlier determination and that the department itself accepted that the matter required reconsideration.

Conclusion: The order under Section 73 was remitted to the proper officer for fresh reconsideration in light of the amendment to Section 16.

Issue (ii): Whether the bank account attachment by notice in Form GST DRC-13 could continue pending fresh decision.

Analysis: Since a substantial part of the liability had already been realised from the electronic credit ledger and the earlier determination was being sent back for reconsideration, the continuation of the bank account attachment was found unwarranted.

Conclusion: The notice in Form GST DRC-13 attaching the bank account was quashed.

Final Conclusion: The writ petition resulted in quashing of the bank account attachment and a remand of the tax ination for fresh decision after hearing the petitioner, with the earlier order kept in abeyance until such decision.

Ratio Decidendi: When the governing input tax credit provision is amended in a manner capable of affecting an earlier determination, the authority must reconsider the order on the amended legal footing and cannot sustain coercive attachment pending such reconsideration without fresh adjudication.

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