Smt Kavita Mandelia vs. The Union Of INDIA And 8 Ors
Held
The Court held that provisional attachment orders under Section 83(2) of the CGST Act cease to have effect after one year from their issuance. Since the attachment orders were from May 2022 and no Demand-cum-Show Cause Notice was issued to the petitioners, the bank accounts must be de-freezed and made operable forthwith.
Facts
GST authorities provisionally attached the bank accounts of the petitioners, who are relatives of directors of M/s Salasar Exim Ltd., in May 2022 under Section 83 of the CGST Act. The petitioners contended they were not served with the attachment orders (Form GST DRC-22) and their accounts remained frozen for over a year without any Demand-cum-Show Cause Notice.
Key Issues
Whether the provisional attachment of bank accounts under Section 83 of the CGST Act could continue beyond the statutory one-year period, especially when no Demand-cum-Show Cause Notice was issued to the account holders.
Sections Cited
Section 83, 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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