Provisional attachment under GST lapses after one year, so a bank cannot block account operations on an expired order.

A provisional attachment of a bank account under the CGST Act ceases automatically after one year under Section 83(2), so an attachment said to have been made in 2020-21 could not continue to block the account beyond that period. Where there was no material showing any later order removing, reviving, or otherwise continuing the attachment, the earlier attachment had become inoperative by operation of law. The bank was therefore directed not to prevent operation of the account solely on the basis of the expired provisional attachment order.

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Issues: Whether a provisional attachment of the petitioner's bank account under Section 83(1) of the Central Goods and Services Tax Act, 2017, stated to have been made in 2020-21, had ceased to operate by virtue of Section 83(2) of the Act, and whether the bank could continue to block operation of the account on that basis.

Analysis: The attachment, if issued in 2020-21, could not remain operative beyond one year from the date of issue, as Section 83(2) provides for automatic cessation of a provisional attachment after that period. On the petitioner's own case, the attachment had neither been removed nor revived, and there was no material to indicate any later order affecting the account. In those circumstances, the earlier attachment had become inoperative by force of law.

Conclusion: The bank was directed not to interdict operation of the petitioner's bank accounts solely on the basis of the provisional attachment order passed under Section 83(1) of the Central Goods and Services Tax Act, 2017 in 2020-21.

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