Order Date – 08 May 2023

Parties: M/s Merlin Facilities Pvt. Ltd. Vs Union of India & Ors.

Facts – 

• The Petitioner, M/s Merlin Facilities Pvt. Ltd. was found to be a non-existing person and has not cooperated in an investigation. The petitioner’s bank accounts were provisionally attached in terms of section 83 of the CGST Act 2017 by an order dated 13.01.2021. 
• However, no further orders have been passed for recovering any dues.

Issue – 

• Whether the provisional attachment of bank account is valid after the expiry of one of one year?

Order – 

• The Divisional Bench of Hon’ble High Court observed that from the plain language of Section 83(2) of the CGST Act that the operation of an order provisionally attaching the bank account would cease to be operative after the expiry of the statutory period of one year.
• In the aforesaid circumstances, the impugned order dated 13.01.2021 has ceased to be operative. Since the impugned order is no longer operative, no orders are required for setting aside the same.
• Hence, it was held that the impugned order would not impede the petitioner, in any manner, in operating its bank account. The concerned Bank shall proceed on the basis that the said order dated 13.01.2021 is no longer operative.
• The writ petition is disposed of.