2024 (7) TMI 666 - HC - GST

Challenge to provisional attachment of bank account - completion of one year's period - HELD THAT - The language employed in Section 83 of the CGST Act makes it clear that it is couched in a mandatory language and therefore, we find no difficulty in holding that impugned provisional attachment order dated 19.05.2023 cease to have effect on expiry of period of one year from the date of issuance of order i.e. 19.05.2023. Petition disposed off.

Summary

Issues: Challenge to provisional attachment of bank account under Section 83 of the CGST Act.

In this judgment delivered by the High Court, the challenge was against the order of provisional attachment of a bank account under Section 83 of the Central Goods and Services Tax Act, 2017. The petitioner argued that the order, dated 19.05.2023, provisionally attaching their bank account should be set aside as it had lost its effect after one year, as per Sub-section (2) of Section 83 of the CGST Act. The respondent, however, failed to extend the provisional attachment within the stipulated time frame. The court examined the mandatory language of the provision, which clearly stated that the provisional attachment ceases to have effect after one year from the date of the order. Consequently, the court held that the provisional attachment order dated 19.05.2023 ceased to have effect after the expiry of one year. The judgment clarified that this decision does not prevent the respondents from taking lawful action against the petitioner. As a result, the Writ Petition was disposed of with no costs, and any pending interlocutory applications were also closed.