M/S Poojashi Enterpise (Opc) Private Limited vs. Union Of INDIA Through The Secretary, Ministry Of Finance, Department Of Revenue

Held

The Court held that the provisional attachment order dated May 2, 2024, passed by respondent no.2 had lapsed by virtue of Section 83(2) of the CGST Act, 2017. The reasoning is that the statutory period for the attachment, as stipulated in Section 83(2), had expired. Consequently, the Court directed the respondents to permit the petitioner to operate their bank account by forthwith releasing any hold or provisional attachment made. The ratio decidendi is that a provisional attachment of property under Section 83 of the CGST Act, 2017, is time-bound, and failure to conclude proceedings within the prescribed period renders the attachment invalid.

Facts

The petitioners, M/s. Poojashi Enterprises (OPC) Private Limited and its Director, Shiva Kumar Deora, approached the Jharkhand High Court challenging a provisional attachment order dated May 2, 2024, issued by the Additional Director of GST Intelligence, Patna (Respondent No. 2). This order provisionally attached the petitioner's bank account. The petitioners sought directions for the release of the attached bank account. The respondents are various authorities under the GST regime, including the Union of India and GST Intelligence officials.

Key Issues

1. Whether the provisional attachment of the petitioner's bank account by the respondent no.2 on May 2, 2024, is still valid in light of Section 83(2) of the CGST Act, 2017? The petitioners argued that the attachment order had lapsed by operation of law. The respondents' contentions were not recorded in the judgment.