Galaxy International vs. Union Of INDIA Thr The Secretary And Ors

Facts

The Petitioner, M/s. Galaxy International, filed a writ petition challenging an order dated 10th May 2023, which attached its bank account with Respondent No. 3. The Petitioner's counsel stated that more than one year had elapsed since the attachment order was passed. The Respondent's counsel agreed with this position, specifically referencing sub-section (2) of Section 83 of the Central Goods and Services Tax Act, 2017, which stipulates that such attachments lapse after one year. Consequently, the Petitioner's counsel indicated that nothing further survived in the petition.

Held

The Court held that the order dated 10th May 2023, attaching the Petitioner's bank account, had lapsed. This conclusion was based on the agreement between both parties that more than one year had passed since the order was issued, and the specific provision of Section 83(2) of the Central Goods and Services Tax Act, 2017, which states that such attachments lapse after one year. As the attachment order had lapsed, the Court found that nothing further survived in the writ petition. The Court directed Respondent No. 3 to de-freeze the Petitioner's bank account upon receiving a copy of the order. No issues were expressly left undecided.

Key Issues

1. Whether the attachment of the Petitioner's bank account, ordered on 10th May 2023, has lapsed by operation of law, specifically Section 83(2) of the Central Goods and Services Tax Act, 2017, due to the passage of more than one year. Petitioner's Argument: The Petitioner contended that the bank account attachment order, passed on 10th May 2023, had lapsed as more than one year had passed since its issuance, as per Section 83 of the CGST Act, 2017. Revenue's Argument: The Respondent (Union of India & Ors.) agreed with the Petitioner's submission regarding the lapse of the attachment order, specifically citing sub-section (2) of Section 83 of the Central Goods and Services Tax Act, 2017.