Order Date – 05 September 2023

Parties: Chaman Goel vs Commissioner, Central Goods and Service Tax & Others

Facts –

• The Petitioner, Chaman Goel, received communications dated 25.10.2021 and 27.01.2022 issued by the respondent under Section 83 of the Central Goods and Services Act, 2017 freezing several bank accounts of the petitioner.

Issue – 

• Whether the freezing the petitioner's bank accounts are still valid under Section 83 of the CGST Act?

Order – 

• The Divisional Bench of Hon’ble High Court observed that one year has passed since the issuance of the impugned communications, making them no longer operative under Section 83(2) of the CGST Act.
• The Board has also issued an advisory dated 02.09.2023, inter alia, stipulating the procedure to be followed where the period of one year has elapsed since the issuance of orders of provisional attachment.
• In view of the above, the petitioner’s challenge to the impugned communications, issued under Section 83 of the CGST Act are academic. The said orders are no longer operative.
• In view of the above, the concerned Banks (Respondent Nos. 2 to 5), shall not interdict the operation of the bank accounts, on account of the impugned communications. The concerned Officer is also directed to follow the procedure as prescribed in the advisory dated 02.09.2023.