Smt Ritu Mandelia vs. The Union Of INDIA And 7 Ors
Held
The Court held that under Section 83(2) of the CGST Act, provisional attachment orders cease to have effect after one year. Since the attachments were made in May 2022 and no subsequent orders or Demand-cum-Show Cause Notice were issued to the petitioners, the attachments had expired in May 2023, and the accounts must be de-freezed.
Facts
CGST authorities provisionally attached the personal bank accounts of the petitioners, who are relatives of directors of M/s Salasar Exim Ltd., under Section 83 of the CGST Act in May 2022. The petitioners challenged the continued freezing of their accounts, arguing the attachments had expired and no show cause notice was issued to them.
Key Issues
Whether provisional attachment of bank accounts under Section 83 of the CGST Act can continue beyond the statutory one-year period, especially when no Demand-cum-Show Cause Notice is issued to the account holders.
Sections Cited
Section 83, Section 83(2), Rule 159
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Page No. #1/21
GAHC010165522026
2026:GAU-AS:12866
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/4286/2026
SMT RITU MANDELIA WIFE OF AMAR KUMAR MANDELIA, RESIDENT OF FLAT NO. 4AB, TOWER- II, EMPIRE BUILDING, 16A, GURUSADAY DUTTA ROAD, KOLKATA, WEST BENGAL- 700019. VERSUS THE UNION OF INDIA AND 7 ORS REPRESENTED BY THE SECRETARY OF GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, ROOM NO. 66, NORTH BLOCK, NEW DELHI - 110001. 2:THE PRINCIPAL COMMISSIONER CENTRAL GOODS AND SERVICE TAX CENTRAL EXCISE AND CUSTOMS 5TH FLOOR GST BHAWAN KEDAR ROAD MACHKHOWA GUWAHATI 781001. 3:THE DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI) REPRESENTED BY ITS ADDITIONAL DIRECTOR GENERAL GUWAHATI ZONAL UNIT H.NO. 77 WARD NO. 54 OPPOSITE SRIMANTA SANKARDEVA KALAKSHETRA PANJABARI MAIN ROAD GUWAHATI 781037. 4:THE JOINT DIRECTOR DIRECTORATE GENERAL OF GST INTELLIGENCE (DGGI) GUWAHATI ZONAL UNIT H.NO. 77 WARD NO. 54 OPPOSITE SRIMANTA SANKARDEVA KALAKSHETRA PANJABARI MAIN ROAD
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GUWAHATI- 781037. 5:THE SENIOR INTELLIGENCE OFFICER DIRECTORATE GENERAL
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