M/S Stalwart Alloys INDIA PVT LTD vs. State Of Haryana And Others

Held

The High Court, without commenting on the merits of the case, disposed of the writ petition. The Court directed the competent authority to pass appropriate orders in accordance with the law. Specifically, the Court ordered that the attachment of the petitioner's bank accounts should not be continued beyond the maximum permissible period of one year. The reasoning is based on the statutory provision of Section 83 of the CGST Act, 2017, and the acknowledgment by the revenue that revocation is necessary after the expiry of the period. The ratio decidendi is that statutory time limits for provisional attachments must be strictly adhered to, and authorities must act to revoke such attachments upon their expiry.

Facts

The petitioner, M/s Stalwart Alloys India Pvt. Ltd., is challenging the continued attachment of its bank accounts, which was initially ordered on August 13, 2025. The petitioner contends that the attachment has subsisted beyond the maximum permissible period of one year as stipulated in Section 83 of the CGST Act, 2017. They rely on a Supreme Court judgment in support of their claim. The respondents-revenue acknowledged that upon the expiry of the one-year period, the competent authority is required to pass orders revoking the attachment.

Key Issues

1. Whether the attachment of the petitioner's bank accounts, ordered on August 13, 2025, can lawfully continue beyond the maximum period of one year as prescribed under Section 83 of the CGST Act, 2017? Petitioner's contention: The petitioner argued that the attachment of bank accounts cannot lawfully subsist beyond the maximum period of one year as prescribed in Section 83 of the CGST Act, 2017. They placed reliance on the judgment of the Hon'ble Supreme Court in Kesari Nandan Mobile Vs. Office of Assistant Commissioner of State Tax; (2025) 177 taxmann.com 481 (SC). Revenue's contention: The respondents-revenue submitted that once the maximum period of one year has expired, the competent authority shall pass necessary orders revoking the attachment.