M/S Sunshine Exim vs. Directorate General Of GST Intelligence Jaipur Zonal Unit
Held
The Court held that the maximum period of attachment as provided under Section 83 of the Central Goods and Services Tax Act, 2017, is one year. It was acknowledged that the attachment comes to an end automatically by operation of law upon the expiry of this period, and no specific order is required for its termination. Consequently, the Court directed Respondents No. 2 and 3 (Punjab National Bank) to allow the petitioner to operate its bank account. This relief is contingent on the attachment not being in respect of any other proceedings apart from the one initiated by the order dated 26.06.2023. The Court did not keep the matter pending and disposed of the writ petition with these directions.
Facts
The petitioner, M/s Sunshine Exim, through its partner, filed a writ petition before the Rajasthan High Court at Jaipur. The petitioner's grievance was that despite the maximum period of attachment of its bank account, as provided under Section 83 of the Central Goods and Services Tax Act, 2017, having expired, the respondent-bank (Punjab National Bank) was not permitting it to operate the account. The order of attachment was initially issued on 26.06.2023. The Directorate General of GST Intelligence Jaipur Zonal Unit was the authority that passed the original attachment order.
Key Issues
1. Whether the attachment of a bank account under Section 83 of the Central Goods and Services Tax Act, 2017, automatically ceases to have effect upon the expiry of the maximum statutory period, without requiring a specific revocation order. The petitioner argued that the attachment order, issued on 26.06.2023, should have automatically lapsed as the maximum period stipulated under Section 83 of the Act of 2017 had ended, yet the bank continued to restrict access to its account. The respondent (Directorate General of GST Intelligence) contended that the legal position is clear, and the maximum period of attachment under Section 83 of the Act of 2017 is one year. They further submitted that the attachment automatically comes to an end by operation of law, and no specific order is needed for its termination.
Sections Cited
Section 83
AI-generated summary — verify with the full judgment below
[2024:RJ-JP:44893-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D. B. Civil Writ Petition No. 16379/2024 M/s Sunshine Exim, (Through Its Partner Sh. Vishvas Ganpat Gaikwad) Having Registered Place Of Business At First Floor, Office No. 111, E-Wing Crsytal Plaza, New Link Road, Opp Infinity Mall, Oshiwara, Andheri West, Mumbai, Mumbai Suburban, Maharashtra- 400053 ----Petitioner Versus
Directorate General Of GST Intelligence Jaipur Zonal Unit, (Through Its Additional Director General) C-62, Sarojani Marg, C-Scheme, Jaipur- 302001. 2. Punjab National Bank, (Through Its General Manager) PNB Corporate Office, Plot No.- 4, Sector 10, Dwarka New Delhi- 110075
Punjab National Bank, (Through Its Branch Manager), Andheri Overseas, Leela Galleria, Andheri Kurla Road, Mumbai- 400059 ----Respondents For Petitioner : Mr. R.P. Singh Advocate through Video Conferencing. Mr. Sachin Mehta Advocate. For Respondent No. 1 : Mr. Ajay Shukla Advocate. HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE ASHUTOSH KUMAR Order 24/10/2024
Heard.
Learned counsel for the petitioner would submit that even though the maximum period of attachment as prov
The judgment continues below.
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