2021 (12) TMI 1144 - HC - GST

Provisional attachment of current Bank Account - direction to the Respondents to de-freeze the Petitioner s bank account - Section 83 of the CGST Act, 2017 - HELD THAT - In view of the position of law vis-a-vis Section 83 of the Act, present writ petition is allowed and the respondents are directed to defreeze the petitioner s bank account bearing current bank Account No. 201001178495 maintained with M/s. IndusInd Bank Ltd., Ground Floor, 2w/3, West Patel Nagar, Opp. Metro Pillar No.195, New Delhi-110008. Writ petition stands disposed of.

Summary

Issues:
Challenge to provisional attachment of bank account under Section 83 of the CGST Act, 2017; Direction to de-freeze bank account; Maintainability of impugned order without disclosure of pending proceedings under specific sections of the GST Act.

Analysis:
The petitioner filed a writ petition challenging the order dated 14th July, 2020, provisionally attaching their bank account under Section 83 of the CGST Act, 2017, and sought direction to de-freeze the account. The petitioner argued that as per Section 83(2) of the Act, the provisional attachment ceases to have effect after one year from the date of issuance, which had elapsed in this case. Citing a previous judgment, the petitioner contended that despite the expiry of the attachment period, they were still unable to operate the account. The petitioner also claimed that the impugned order was not maintainable as it did not indicate any pending proceedings under specific sections of the GST Act, contrary to the Supreme Court's ruling in Radha Krishan Industries v. State of H.P. (2021) 6 SCC 771.

The court issued notice and the respondent no.2 acknowledged it. The respondent's counsel, representing the Deputy Commissioner of CGST, West Delhi, informed the court that the investigation had not progressed due to the petitioner's non-cooperation, as they had not responded to the summons. However, the respondent's counsel admitted that the provisional attachment order would expire after one year, as per Section 83(1) of the Act. The petitioner's counsel refuted the non-cooperation allegation and assured that the petitioner would respond within seven days if served with a copy of the summons.

Accepting the petitioner's assurance, the court directed the respondents to de-freeze the petitioner's bank account maintained with IndusInd Bank Ltd. The court clarified that the respondents were free to take further legal steps as per the law. Consequently, the writ petition was allowed, and the matter was disposed of.