GST – Telangana High Court: Provisional attachment orders for Bank account have spent their life span of one year from the date of the order, hence such provisional attachment orders cannot be allowed to continue beyond the period prescribed under the statute – Writ petition allowed [Order attached]
Order Date – 22 December 2022
- The Petitioner, Greenfinch Team Management P Ltd, had current accounts in ICICI Bank and Corporation Bank. It was provisionally attached on 02.12.2019 and again on 08.12.2021 under Section 83 of the Central Goods and Services Tax Act, 2017.
- Respondent submitted that the basis of written instructions that investigations are ongoing against the petitioner under Section 67, it was for that reason that the bank account of the petitioner was provisionally attached. If the attachment is lifted, there is a possibility of petitioner withdrawing the amount deposited.
- Whether the Bank accounts can be provisionally attached for more than one year?
- The Hon’ble High Court held that as per Section 83(2) of the CGST Act mandating that a provisional attachment order would have a life span of only one year from the date of the order made under sub-section (1).
- In this case it is evident that the provisional attachment orders dated 02.12.2019 and 08.12.2021 have spent their force. Such provisional attachment orders cannot therefore be allowed to continue beyond the period prescribed under the statute.
- Hence the provisional attachment orders are quashed without expressing any opinion on the pending proceedings against the petitioner under Sections 67(2) and 74 of the CGST Act.