Order Date – 30 June 2023

Parties: Bharat Parihar, Kishan Lal Bunkar, Sunbright Designers Pvt. Ltd. Vs State of Maharashtra Thr. PP Office And Ors.

Facts – 

• The petitioners, Bharat Parihar, Kishan Lal Bunkar, Sunbright Designers Pvt. Ltd. Challenges the provisional attachment of Bank accounts made on 21st April 2022.
• The Department retained the provisional attachment made on 21st April 2022 and with further communication dated 19th April 2023.

Issue –

• Whether the provisional attachment of Bank accounts is valid?

Order –

• The Single Bench of Hon’ble High Court observed that in the instant case, the provisional attachment order was made on 21st April 2022 and period of one year from the said date expired on 21st April 2023. Therefore, the provisional attachment order dated 21st April 2022 ceases to have effect by operation of law and cannot continue to operate after 21st April 2023.
• In so far as continuation of the provisional attachment by the Respondent’s letter dated 19th April 2023 is concerned, it was observed that from the order sheet records the date of the noting as 21st April 2022, wherein after narrating the facts it is stated that same is submitted for necessary orders under Section 83 of the MGST Act.
• Thus, it does not find any fresh order having being passed by the Respondents to attach the bank account on 19th April 2023. In any view of the matter, mere notings in the file of the concerned Officer cannot constitute an order without a formal order as the law may mandate being passed and most importantly such order being communicated to the affected person, whose bank account is attached.
• In any case, the Respondents have also not disputed that letter of 19th April 2023 is only a communication to the bank, to retain provisional attachment of the account. Thus, it can never be a fresh order under Section 83(1) provisionally attaching the Petitioner’s bank account. In these circumstances, it is clear that after 21st April 2023 there is no provisional attachment of the Petitioner's bank account, looked from any angle.
• In the light of the above discussion, it is held that the communication dated 21st April 2022 (Exhibit “B” to the petition) provisionally attaching the Petitioner’s bank account is rendered illegal and invalid by virtue of the provisions of Section 83(2) of the CGST Act. The extension of the provisional attachment by communication dated 19th April 2023 (Exhibit “G-1” to the petition) is hereby quashed and set aside. Parties, including the bank, to act on authenticated copy of this order.