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2021 (1) TMI 969 - HC - GSTProvisional attachment of Bank Account - Section 83 of the CGST Act, 2017 - HELD THAT - The Bank Account has been ordered to be provisionally attached under Section 83 of the CGST Act, 2017. This Writ Application need not be adjudicated on merits as the impugned order of provisional adjudication has outlived its statutory life. As per Section 83 of the Act, other provisional attachment shall cease to have effect after the expiry of period of one year from the date of order made under sub-Section (1). The impugned order is dated 24.10.2019. The period of one year expired way back in October 2020 - In such circumstances, it can be said that there is no provisional attachment of Bank Account in existence or in operation as on date. This writ application disposed off.
Issues:
Challenge to order of provisional attachment of Bank Account under Section 83 of the CGST Act, 2017. Analysis: The Writ Application was filed under Article 226 of the Constitution of India, seeking various reliefs including quashing of the notice of provisional attachment of a Bank Account under Section 83 of the CGST Act, 2017. The impugned order of provisional attachment was dated 24.10.2019. However, as per Section 83 of the Act, a provisional attachment ceases to have effect after one year from the date of the order. Since the period of one year had expired in October 2020, the Court noted that the provisional attachment of the Bank Account was no longer in operation. Consequently, the Court directed the Axis Bank to allow the petitioner to operate Bank Account No. 918020082527790. The Court disposed of the Writ Application based on these findings, as there was no longer any provisional attachment in place. This judgment highlights the importance of statutory timelines in the context of provisional attachments under the CGST Act, 2017. It clarifies that once the statutory period of one year from the date of the order expires, the provisional attachment automatically ceases to have effect. The Court's decision to allow the petitioner to operate the Bank Account emphasizes the significance of adhering to the statutory provisions governing provisional attachments. Overall, the judgment provides clarity on the duration and effect of provisional attachments under the CGST Act, 2017, ensuring that such measures are not unduly prolonged beyond the prescribed period.
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