2023 (12) TMI 161 - HC - GST

Provisional attachment of petitioner s bank account - time limitation - cessation of attachment after the expiry of a period of one year from the date of the order made - HELD THAT - It is informed that final orders on such show cause notice are reserved. In these peculiar circumstances and considering the fact that the impugned provisional attachment order itself is dated 17 March, 2023 and this petition also being filed on 16 October, 2023, it would be appropriate and in the interest of justice that the Adjudicating Authority passes a final order on the show cause notice. The revenue has stated that the orders on the show cause notice shall be passed by the Adjudicating Authority within a period of four weeks from today - such statement is accepted. The petition is disposed off by continuing the ad-interim order passed.

Summary

Issues involved:
The legality of successive provisional attachments of a bank account u/s 83 of the CGST Act.
Summary:
The petitioner challenged an order provisionally attaching their bank account u/s 83 of the CGST Act, arguing that successive attachments defeat the provision's one-year limit. The court ordered a re-verification and set a future date for further proceedings. The status quo of the attachment was maintained. Previous proceedings involved securing revenue concerns by depositing a specific amount and allowing operation of the account beyond that sum. A show cause notice was issued, and final orders were pending. The court accepted the revenue's commitment to decide on the notice within four weeks and continued the interim order. All petitioner's contentions on the attachment's legality were kept open. The petition was disposed of with no costs.