J Core International Through Prop. Abhimanyu Bholu Dubey vs. Assistant Commissioner, CGST

Facts

The petitioner, J Core International, through its proprietor Abhimanyu Bholu Dubey, filed a writ application challenging a notice of provisional attachment of its bank account, bearing number 918020082527790. This notice was issued under Section 83 of the CGST Act, 2017, by the Assistant Commissioner, CGST, on October 24, 2019. The petitioner sought quashing of this order, arguing that one year had passed since its issuance. The bank account was provisionally attached by the respondent authority.

Held

The Court held that the provisional attachment of the bank account under Section 83 of the CGST Act, 2017, ceases to have effect after the expiry of one year from the date of the order. The impugned order of provisional attachment was dated October 24, 2019. Consequently, the one-year period expired in October 2020. Therefore, as of the date of the judgment, there was no provisional attachment of the bank account in existence or operation. The Court directed Axis Bank, Kapodara Branch, Surat, to permit the writ applicant to operate his bank account. The writ application was disposed of on this basis.

Key Issues

1. Whether the provisional attachment of the bank account under Section 83 of the CGST Act, 2017, remains valid after the expiry of one year from the date of the order? The petitioner contended that the provisional attachment order has outlived its statutory life as one year has passed since its issuance on October 24, 2019. Therefore, the attachment should cease to have effect. The respondent authority did not record any specific arguments in the judgment.