25 Jun Delhi High Court Ruling on GST Provisional Attachment of Bank Account
Introduction:
In the case of Seema Gupta v. Principal Commissioner of GST [W.P. (C) NO. 7387 of 2024 dated May 24, 2024], the Hon’ble Delhi High Court addressed the issue of provisional attachment of a bank account under Section 83 of the Central Goods and Services Tax Act, 2017 (“CGST Act”).
Facts of the Case:
Seema Gupta, the petitioner, had her bank account provisionally attached by the Revenue Authority on January 27, 2022, under Section 83 of the CGST Act.
After the initial attachment order, no fresh order for attachment was issued by the Revenue Authority.
The petitioner argued that since no fresh attachment order was issued and more than one year had passed, she should be allowed to operate her bank account.
Issue:
Whether the provisional attachment under Section 83 of the CGST Act ceases to have effect after the expiry of one year in the absence of a fresh attachment order?
Held:
The Hon’ble Delhi High Court in W.P. (C) No. 7387 of 2024 held as follows:
- It was noted that the provisional attachment of the petitioner’s bank account had ceased to have effect after the period of one year had expired without a fresh attachment order being issued.
- Consequently, the court directed the bank to immediately permit the petitioner to operate her bank account.
This ruling clarifies the temporal limits of provisional attachment under GST laws, emphasizing that such attachments do not persist indefinitely without renewed orders from the Revenue Authority.
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