What is the Time Limit for provisional attachment under Section 83(2) of the CGST Act,2017?

Time Limit for provisional attachment

Case Title

Subham Traders vs Additional Director General

Court

Gujarat High Court

Honorable Judges

Justice J.B Pardiwala and Justice Nisha M Thakore

Citation

2022 (3) GSTPanacea 263 HC Gujarat

R/SPECIAL CIVIL APPLICATION NO. 14706 of 2021

Judgement Date

03-March-2022

Council for Petitioner

Mr. Avinash Poddar

Council for Respondent

Mr.Devang Vyas

In Favor Of

Respondent

Section

Section 83(2) of the CGST Act,2017

 

The Gujarat High Court, Ahmedabad Bench of Justices J.B Pardiwala and Justice Nisha M Thakore, held that, there is no order of provisional attachment of any of the three bank accounts maintained by the writ-applicant with the three banks referred to above.

FACTS OF THE CASE

An order of provisional attachment was passed against the petitioner in exercise of powers under Sub-section (2) of Section 83 of the Act, whereby, the bank account of the writ- applicant maintained with the INDUSIND Bank Ltd., Surat came to be provisionally attached. If we go by the date i.e. 26.09.2019, then the statutory time period of such order of provisional attachment could be said to have come to an end. However, later one another order of provisional attachment in Form DRC-22, dated 30.09.2021 came to be passed with respect to the very same bank accounts. Therefore writ petition for release of such order.

Time Limit for provisional attachment

COURT HELD


The Court held that with reference to the material on record by letters the concerned bank account of the petitioner has already been released. in exercise of powers under Sub-section (2) of Section 83 of the Act, whereby, the bank account of the writ- applicant maintained with the INDUSIND Bank Ltd., Surat came to be provisionally attached. As on date, there is no order of provisional attachment of any of the three bank accounts maintained by the writ-applicant with the three banks referred to above. Nothing further requires to be adjudicated in the matter.

Time Limit for provisional attachment

ANALYSIS OF THE JUDGEMENT

We can conclude that an order of attachment of bank account under Section 83 of the CGST Act, 2017 can be passed for a period of one year and such order shall cease to operate after a period of one year.

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Subham Traders

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Gujarat High Court