2022 (3) TMI 495 - HC - GST

Provisional attachment of bank accounts of the petitioner - Section 74 of the Delhi GST Act - HELD THAT - Admittedly, after issuance of the impugned orders/letters, no fresh attachment order has been issued to the Petitioners. According to Section 83(2) of the CGST Act, every provisional attachment order ceases to have effect after the expiry of one year from the date the order was passed under Section 83(1) of the CGST Act. Consequently, the impugned provisional attachment order/letter is no longer effective. Accordingly, this Court directs the Respondents to defreeze the bank accounts of the Petitioners not later than three days from today - Petition disposed off.

Summary

Issues:
Seeking directions to release/de-freeze provisionally attached bank accounts.

Analysis:
The judgment was delivered by Hon'ble Mr. Justice Manmohan. The petitioner filed writ petitions to direct the Respondents to release/de-freeze their bank accounts provisionally attached by orders dated 10th and 11th September 2020. During the hearing, the Respondents' counsel sought time to obtain instructions. In the latest hearing, it was stated that no fresh DRC-22 notices were issued against the Petitioners, but notices under Section 74 of the Delhi GST Act were issued by the State GST to the Petitioners. The Court noted that no fresh attachment order had been issued to the Petitioners after the impugned orders. As per Section 83(2) of the CGST Act, provisional attachment orders cease to have effect after one year from the date of issuance. Consequently, the impugned provisional attachment order was no longer effective. The Court directed the Respondents to defreeze the bank accounts of the Petitioners within three days from the judgment date, and with this direction, the writ petitions and pending applications were disposed of.