GST
TRT-2025-
Supreme court of India
Date:-14-08-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 14 Aug 2025
Parties: Kesari Nandan Mobile v. Office of Assistant Commissioner of State Tax
Facts -
- The appellant’s bank accounts were provisionally attached under Section 83 CGST Act by orders dated October 2023, which lapsed automatically after one year under Section 83(2). The department issued fresh attachment orders in November and December 2024, treating them as renewals.
- The Gujarat High Court upheld these, holding that fresh attachment could be issued to safeguard revenue. The appellant argued that Section 83(2) fixed a hard one-year limit with no scope for renewal.
Issue -
- Whether authorities can reissue or renew provisional attachment orders under Section 83 CGST Act once the earlier attachments have lapsed after one year?
Order -
- The Supreme court held that Section 83(2) clearly provides that attachment ceases after one year, and the statute contains no mechanism for renewal or reissuance.
- Allowing successive attachments would render Section 83(2) meaningless and enable misuse of power. Provisional attachment is a drastic measure, strictly preventive, and must remain within statutory limits.
- The Court allowed the appeal, quashed the impugned attachment orders dated November and December 2024, and directed defreezing of the appellant’s bank accounts. However, it clarified that the department is free to continue investigation by lawful means.
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