Ireo Private Limited vs. Union Of INDIA And Others

Facts

The petitioner, IREO PRIVATE LIMITED, filed a writ petition challenging the attachment of its bank accounts under Section 83 of the Central Goods and Services Tax Act, 2013. The bank accounts were attached on April 9, 2020. During the pendency of the petition, one year elapsed since the attachment. The petitioner had also created a fixed deposit of Rs. 20 Crores pursuant to a court order dated January 7, 2021, after which the bank accounts were de-freezed. Proceedings related to a show cause notice for the service tax period of 2013 to 2017 were pending adjudication.

Held

The Court held that the attachment of property under Section 83 of the Central Goods and Services Tax Act, 2013, is valid only for a period of one year. Since the bank accounts were attached on April 9, 2020, and one year has elapsed during the pendency of the petition, the attachment is no longer valid. The Court noted that the bank accounts have already been de-freezed. Consequently, no further orders are required to be passed concerning the attachment in this writ petition. The Court also directed that the fixed deposit of Rs. 20 Crores, created pursuant to the order dated January 7, 2021, can be released to the petitioner for their utilization. The issue of the vires of Section 83 of the Act, 2017, was expressly left open.

Key Issues

1. Whether the attachment of bank accounts under Section 83 of the Central Goods and Services Tax Act, 2013, is valid for a period of one year, and if so, whether the attachment in this case has lapsed. The petitioner argued that the attachment of bank accounts under Section 83 of the Act is valid only for one year. Since the attachment was made on April 9, 2020, and more than a year has elapsed, the attachment is no longer valid. The petitioner also pointed out that their bank accounts have been de-freezed. The respondents' arguments are not recorded in the judgment.