2023 (8) TMI 394 - HC - GST

Provisional attachment of savings account - Section 83(1) of the Central Goods and Services Tax Act, 2017 - HELD THAT - In terms of Section 83(2) of the Act, every provisional attachment order under Section 83(1) shall cease to have effect after the expiry of the period of one year from the date of the order. Thus, the impugned order dated 17.05.2022 whereby the bank accounts of the petitioners were attached, cease to be operative. This Court further directs the concerned banks to permit the petitioners to operate their bank accounts that were frozen in terms of the order dated 17.05.2022, on the strength of this order - Petition disposed off.

Summary

Issues Involved:
The freezing of bank accounts under Section 83(1) of the Central Goods and Services Tax Act, 2017.

Summary:

Issue 1: Freezing of Bank Accounts under Section 83(1) of the CGST Act, 2017

1. The petitioners filed a petition seeking a writ of mandamus to defreeze their bank accounts provisionally attached under Section 83(1) of the CGST Act, 2017.

2. The provisional attachment order issued on 17.05.2022 ceased to have effect after one year from the date of the order as per Section 83(2) of the Act.

3. The respondents agreed to communicate to the banks that the attachment orders were no longer operative.

4. The Court directed the concerned banks to allow the petitioners to operate their frozen bank accounts based on the Court's order.

5. The Court clarified that this order does not apply if the bank accounts were frozen for reasons other than the order dated 17.05.2022 under Section 83(1) of the Act.

6. The petition was disposed of with the above directions.