Order Date – 02 June 2023

Parties: M/s Divine Creations Vs Directorate General of GST Intelligence & Anr.

Facts – 

• The Petitioner, M/s Divine Creations, bank account was provisionally attached under section 83(2) of the CGST Act by a communication dated 10.03.2021.
• It is seen that more than one year has already elapsed since the date of the letter and there was no other communication on record freezing the bank accounts of the petitioner, and therefore, in terms of Section 83(2) of the CGST Act, the said order has ceased to operate.

Issue – 

• Whether the provisional attachment of bank account for more than one year without further communication is valid?

Order – 

• The Divisional Bench of Hon’ble High Court held that the present petition is disposed of by declaring that the order pursuant to which the communication dated 10.03.2021 was issued, is no longer operative by virtue of Section 83(2) of the CGST Act.
• The concerned bank will not interdict the operation of the bank account of the petitioner on the basis of the communication dated 10.03.2021.