Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account

The Division Bench, consisting of Chief Justice Manindra Mohan Shrivastava and Justice Ashutosh Kumar, was dealing with a case in which the assessee challenged the department's attachment of their bank account on the grounds that, according to Section 83(2) of the CGST Act, the provisional attachment of a bank account ceases to have effect after one year.

The impugned order was issued on 26.06.2023, but the department has still not released the assessee's bank account.

The assessee submitted that even though the maximum period of attachment as provided under Section 83 of the Central Goods and Services Tax Act, 2017 has come to an end, attachment order having been issued on 26.06.2023, the assessee is not being permitted to operate its bank account by the bank.

The department submitted that legal position is clear that maximum period of attachment would be one year as provided under Section 83 of the Act of 2017. The attachment comes to an end automatically by operation of law and no order is required to be passed.

The bench directed the Punjab National Bank to allow the assessee to operate its bank account unless the attachment of the account is in respect of some proceedings other than the one in connection with which order of attachment was earlier passed on 26.06.2023.

In view of the above, the bench allowed the petition.

Counsel for Petitioner/ Assessee: R.P. Singh

Counsel for Respondent/ Department: Ajay Shukla

Case Title: M/s Sunshine Exim v. Directorate General Of GST Intelligence Jaipur Zonal Unit

Case Number: D. B. Civil Writ Petition No. 16379/2024

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