2023 (9) TMI 401 - HC - GST

Freezing of Bank Accounts of petitioner - period of one year has elapsed since the issuance of orders of provisional attachment - HELD THAT - The petitioner s challenge to the impugned communications issued under Section 83 of the CGST Act are academic. The said orders are no longer operative. The concerned Banks (Respondent Nos. 2 to 5) shall not interdict the operation of the bank accounts on account of the impugned communications. The concerned Officer is also directed to follow the procedure as prescribed in the advisory dated 02.09.2023 - petition disposed off.

Summary

Issues:
The judgment involves challenging communications issued under Section 83 of the Central Goods and Services Act, 2017 (CGST Act) freezing specific bank accounts.

Details of the Judgment:

1. The petitioner filed a petition challenging communications dated 25.10.2021 and 27.01.2022, issued by the respondent u/s 83 of the CGST Act, freezing four bank accounts.

2. As one year has passed since the issuance of the impugned communications u/s 83 of the CGST Act, they are no longer operative as per Section 83(2) of the Act.

3. The Board issued an advisory on 02.09.2023 outlining the procedure to be followed after the lapse of one year from the provisional attachment orders. The advisory emphasizes the need for communication/intimation to the concerned bank authorities for release/restoration of the attached property/account.

4. Considering the above, the challenge to the impugned communications by the petitioner is deemed academic since the orders are no longer in effect.

5. The judgment directs the concerned Banks (Respondent Nos. 2 to 5) not to disrupt the operation of the bank accounts based on the impugned communications. The concerned Officer is instructed to adhere to the procedure outlined in the advisory dated 02.09.2023 for dealing with similar cases.

6. Consequently, the petition is disposed of in accordance with the terms mentioned above.