2025 (7) TMI 1198 - HC - GST

Challenge to order of provisional attachment of the Petitioner s Bank account by invoking Section 83(2) of the CGST Act 2017 - time limitation - HELD THAT - A period of one year has already elapsed since the issuance of the impugned provisional attachment order in terms of Section 83(2) of the CGST Act 2017. The provisional attachment order ceased to have effect after the expiry of one year from the date of an order made under Section 83(1) of the CGST Act 2017. Therefore the impugned order dated 22 March 2024 has ceased to have effect post 21 March 2025. In identical circumstances this Court in the case of Ashok Kumar Vs Union of India Ors 2025 (7) TMI 398 - BOMBAY HIGH COURT had declared and quashed the provisional attachment order by relying on the provisions of Section 83(2) of the CGST Act 2017. It is declared that the impugned order dated 22 March 2024 has ceased to have effect post 21 March 2025. The same is formally quashed and set aside - petition allowed.

Summary

The Bombay High Court, per M.S. Sonak, J., allowed the Petition challenging the provisional attachment of the Petitioner's bank account under Section 83(2) of the CGST Act, 2017. The Court held that "the order of provisional attachment made under Section 83(1) shall cease to have effect after the period of one year." Since more than one year had elapsed from the impugned order dated 22 March 2024, it "ceased to have effect post 21 March 2025." Citing the precedent in Ashok Kumar Vs Union of India & Ors, the Court quashed and set aside the provisional attachment order. The Respondents were directed to notify the bank to release/de-freeze the Petitioner's account within one week upon production of an authenticated copy of the order. The Rule was made absolute with no order as to costs.