Provisional attachment under GST ends after one year, allowing bank account operation unless linked to other proceedings.

Provisional attachment under Section 83 of the CGST Act ceases by operation of law after one year, so continued restraint on a bank account cannot be maintained once that maximum period has expired. On that basis, the petitioner was permitted to operate its bank account, unless the account remained attached in relation to some other proceeding separate from the attachment order dated 26.06.2023.

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Issues: Whether the petitioner was entitled to operate its bank account after expiry of the provisional attachment period under Section 83 of the Central Goods and Services Tax Act, 2017.

Analysis: The order proceeded on the basis that the maximum period of attachment under Section 83 had expired and that such attachment ends by operation of law after one year. In those circumstances, continued restraint on the bank account could not be sustained, except where the account was attached in relation to some other proceedings.

Conclusion: The petitioner was permitted to operate its bank account unless the attachment related to proceedings other than the one for which the attachment order dated 26.06.2023 had been passed.

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