Provisional attachment under GST lapses after one year and cannot continue once the statutory period expires.

A provisional attachment under the CGST Act ceases to operate on the expiry of one year from the date of the order under Section 83(1). The fact that adjudication proceedings were later completed and an appeal was filed did not revive or extend the attachment once it had lapsed by operation of law. The bank account could therefore not continue to remain attached after the statutory period expired, and consequential release followed.

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Issues: Whether the provisional attachment of the petitioner's bank account under Section 83(2) of the Central Goods and Services Tax Act, 2017 could continue after the expiry of one year from the order made under Section 83(1) of that Act.

Analysis: The attachment was issued pending adjudication proceedings, but one year had already elapsed from the date of the provisional attachment order. Under Section 83(2), such an order ceases to have effect on the expiry of one year from the date of the order made under Section 83(1). The subsequent completion of adjudication proceedings and the filing of an appeal did not alter the position that the provisional attachment had already lapsed by operation of law. Once the order had ceased to be effective, the attachment of the bank account could not continue.

Conclusion: The provisional attachment was held to have lapsed and was quashed and set aside, with consequential direction for release of the bank account.

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