2024 (10) TMI 1657 - HC - GST

Attachment of the bank account in exercise of powers conferred by Section 83 - provisional attachment not continued beyond a period of 12 months - subsequent issuance of a Show Cause Notice - post conclusion of investigation - HELD THAT - In our considered opinion the mere issuance of that SCN would not sustain a continuance of the provisional attachment. Accordingly we allow the instant writ petition and quash the continuance of the provisional attachment order dated 12 May 2020. The respondents are directed to issue appropriate clarificatory directions and communicate the same to the Branch Manager of the United Bank of India forthwith.

Summary

The Delhi High Court, through Hon'ble Justices Yashwant Varma and Ravinder Dudeja, adjudicated a petition challenging the attachment of the petitioner's bank account under Section 83 of the Central Goods and Services Tax Act, 2017. The Court noted that the provisional attachment "could not have continued beyond a period of 12 months" and that no fresh order under Section 83 was issued. It held that the subsequent issuance of a Show Cause Notice (SCN) "would not sustain a continuance of the provisional attachment." Consequently, the Court allowed the writ petition, quashing the continuation of the attachment order dated 12 May 2020, and directed the respondents to issue clarificatory directions to the bank forthwith.