Ms V K Enterprises vs. State Of Haryana And Others

Facts

The petitioner, M/s V K Enterprises, challenged the continued attachment of its bank account by the State of Haryana and other respondents. The attachment was initially made on June 5, 2025. The petitioner's sole contention was that the maximum period permissible for such attachment under Section 83(2) of the Haryana Goods and Services Tax Act, 2017, had expired, rendering the continuation of the attachment illegal. The revenue, through its counsel, did not dispute the fact that the maximum statutory period for attachment had elapsed.

Held

The Court held that the continuation of the attachment of the petitioner's bank account could not be sustained once the maximum permissible period under Section 83(2) of the Haryana Goods and Services Tax Act, 2017, had expired. The Court found the petitioner's submission to be valid, especially as the revenue did not dispute the factual premise of the petitioner's claim. The ratio decidendi is that statutory time limits for provisional attachments must be strictly adhered to, and any continuation beyond such limits is impermissible. Consequently, the writ petition was allowed, and the respondents were directed to forthwith de-freeze the petitioner's overdraft account. No issue was expressly left undecided.

Key Issues

1. Whether the continuation of the attachment of the petitioner's bank account beyond the period prescribed under Section 83(2) of the Haryana Goods and Services Tax Act, 2017, is legally sustainable? Petitioner's Argument: The petitioner argued that the attachment of its bank account, made on June 5, 2025, had continued beyond the maximum permissible period stipulated in Section 83(2) of the Act of 2017. Therefore, the continued attachment was in violation of the statutory provision and should be quashed. Revenue's Argument: The learned counsel for the revenue did not dispute the petitioner's assertion regarding the expiry of the maximum permissible period under Section 83(2) of the Act of 2017. The judgment records no further arguments from the revenue.