2023 (8) TMI 972 - HC - GST

Attachment of Bank Accounts of petitioner - Time limitation - HELD THAT - The provisions of section 83 indicates that orders of attachment are self-limiting. They are to remain in force for one year. The writ petition is closed as nothing further survives for adjudication.

Summary

Issues involved: Challenge to impugned attachment of Bank Account u/s 83 of CGST Act, 2017.

Summary:
The petitioner challenged the impugned attachment of their bank account under Section 83 of the Central Goods and Services Tax Act, 2017. The attachment was made by the Commissioner of GST and Central Excise to protect the government revenue during proceedings initiated against the taxable person to determine the tax or any other amount due. The respondents argued that the attachment was valid under Section 83 of the CGST Act, 2017 and Rule 159 (1) of the CGST Rules, 2017, as the adjudication proceedings were pending.

The respondents provided details of other bank accounts through which the petitioner was operating their unit, indicating that not all accounts were attached. They highlighted the provisions of Section 83 of the CGST Act, stating that provisional attachment of property, including bank accounts, can be done to protect government revenue during certain proceedings. The attachment order was issued in accordance with the law and was valid for a period of one year.

The Court noted that orders of attachment under Section 83 are self-limiting and cease to have effect after one year from the date of the order. As the attachment in question was made on 15.03.2022, it would automatically cease to have effect after one year. Consequently, the writ petition was closed with no further adjudication needed, and no costs were awarded. Connected miscellaneous petitions were also closed accordingly.