Provisional Attachment u/s 83 of CGST Act cannot be Done after Expiry of One Year from Date of Original Attachment: Bombay HC [Read Order]
![Provisional Attachment u/s 83 of CGST Act cannot be Done after Expiry of One Year from Date of Original Attachment: Bombay HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/07/Provisional-Attachment-Original-Attachment-Bombay-High-Court-taxscan.jpg "Provisional Attachment u/s 83 of CGST Act cannot be Done after Expiry of One Year from Date of Original Attachment: Bombay HC [Read Order]")
In a recent case, the Bombay High Court held that the provisional attachment of a Bank Account under section 83 of the Central Goods and Service Tax Act, 2017 cannot be done after the expiry of one year from the date of the original attachment. Bharat Parihar, the appellant assessee challenging the provisional attachment of the bank account of the Petitioner with Yes Bank, Mumbai,...
In a recent case, the Bombay High Court held that the provisional attachment of a Bank Account under section 83 of the Central Goods and Service Tax Act, 2017 cannot be done after the expiry of one year from the date of the original attachment.
Bharat Parihar, the appellant assessee challenging the provisional attachment of the bank account of the Petitioner with Yes Bank, Mumbai, under section 83 of the Central Goods and Service Tax Act.
The counsel for the assessee contended that the provisional attachment shall cease to have effect after the expiry of a period of “one year” from the date of the order made under section 83 of the Central Goods and Service Tax Act.
It was further submitted that the provisional attachment communication made by the bank was not as per the law and was liable to be deleted.
The counsel for the respondent relied on the decisions made by the lower authorities and contended that fresh order was passed provisionally attaching the Petitioner’s bank account and the provisional attachment of the Petitioner’s account as informed in the communication was valid and made as per the law and liable to be sustained.
It was further submitted that based on several decisions the respondent passed the fresh attachment order of the bank account thus it was legally valid.
The Court observed that the respondents had not shown that such an order was passed and served on the Petitioner much less before the provisional attachment order ceasing to operate under the provisions of section 83(2) of the Central Goods and Services Tax Act.
The two-member panel comprising G.S. Kulkarni and Jitendra Jain held that provisionally attaching the Petitioner’s bank account was rendered illegal and invalid under the provisions of the prescribed law and quashed the order while allowing the appeal filed by the assessee.
To Read the full text of the Order CLICK HERE
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