In W.P.(C) 10325/2022 -DEL HC- Delhi High Court allows petitioner to operate bank accounts as provisional attachment orders ceased to be operative under Section 83(2) of Central Goods and Services Tax Act
Justice Vibhu Bakhru & Justice Amit Mahajan [30-05-2023]

Read Order: M/s. Balaji Enterprises V. Principal Additional Director General, Directorate General of GST Intelligence

Chahat Varma

New Delhi, June 14, 2023: The High Court of Delhi has permitted M/s. Balaji Enterprises (petitioner) to operate their bank accounts without any hindrance, as the provisional attachment orders had ceased to be operative by efflux of time, by virtue of Section 83(2) of the Central Goods and Services Tax Act (CGST Act).

The petitioner had filed the petition, challenging the provisional attachment order issued by the respondents, which included the attachment of the petitioner's bank account with IndusInd Bank, New Delhi. The petitioner argued that that the order was passed without any reason to believe that such an order was necessary for protecting the interest of the Revenue. In addition, the petitioner's counsel argued that the order goes beyond its scope by attaching the bank accounts of the petitioner's immediate family members and related entities, and submitted that no such powers were available under Section 83 of the CGST Act.

Considering the submissions put forth by the respondents, which stated that the provisional attachment order had ceased to be operative as one year had passed since its issuance, the High court directed that the petitioner should not face any hindrance in operating their bank accounts due to the impugned order.

The petitioner had also submitted a list of fifteen bank accounts, which were provisionally attached by separate orders issued on 20.04.2022. The respondent’s counsel stated that these attachment orders had also ceased to be operative due to the passage of time, as per Section 83(2) of the CGST Act.

In light of this information, the High court directed the concerned banks not to impede the operation of the bank accounts due to the provisional attachment orders issued on 20.04.2022.