Provisional attachment under GST lapses after one year, allowing the bank account to be operated without further restraint.

Provisional attachment of a bank account and vehicle under Section 83 of the CGST Act ceases to operate after one year from the date of the order. Once that statutory period expired, the attachment could not be relied on further, and the Court directed the banks and registering authority not to act on the impugned communications or orders. It also required compliance with the standing direction that the attachment be communicated once it ceases to operate, enabling the petitioner to operate the bank account without interference on the basis of the expired attachment.

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Issues: Whether the provisional attachment of the petitioner's bank account and vehicle under Section 83 of the Central Goods and Services Tax Act, 2017 had ceased to operate after one year, and whether consequential directions were required to allow the petitioner to operate the bank account and prevent further action on the attachment order.

Analysis: The attachment was made under Section 83 of the Central Goods and Services Tax Act, 2017. The statutory scheme provides that an order of provisional attachment ceases to operate after the expiry of one year from the date of the order. Since the impugned attachment orders were no longer operative, the Court found it unnecessary to examine the reasons or basis for issuing them. The banks and the registering authority were directed not to act on the basis of the impugned communications or orders, and the respondent was directed to ensure compliance with the standing directions requiring communication once the attachment ceases to operate.

Conclusion: The provisional attachment could not survive beyond the statutory period of one year, and the petitioner was entitled to operate the bank account without interference on the basis of the impugned orders. The attachment-related directions were therefore issued in favour of the petitioner.

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