2024 (7) TMI 167 - HC - GST

Provisional Attachment order of Bank Account - Section 83 of the Central Goods and Service Tax Act, 2017 - expiry of one year from the date the order is made. It is conceded by the respondent that provisional attachment order was issued on 27.01.2022 and thereafter no fresh attachment order has been issued. HELD THAT - It is held that the provisional attachment of the Bank Account No. 1711210216080660 with AU Small Finance Bank in the name of petitioner has ceased to have effect - The respondent bank is accordingly directed to forthwith permit operation of the said bank account and not impose any embargo on the operation of the same based solely on the provisional attachment order dated 27.01.2022. Petition alllowed.

Summary

Issues:
Impugning attachment order under Section 83 of the Central Goods and Service Tax Act, 2017.

Analysis:
The petitioner challenged the provisional attachment order of their bank account under Section 83 of the Central Goods and Service Tax Act, 2017. 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 the order. The respondent admitted that the provisional attachment order was issued on a specific date and no fresh attachment order had been issued thereafter.

The court considered the submissions and held that since no fresh attachment order had been issued after the initial one, the provisional attachment of the petitioner's bank account had ceased to have effect. Consequently, the court allowed the petition and directed the respondent bank to immediately allow the operation of the bank account without any restrictions based solely on the provisional attachment order dated a specific date.

In conclusion, the court disposed of the petition by declaring that the provisional attachment of the bank account had lapsed and directing the respondent bank to permit the operation of the account without any hindrance.