R J Enterprise vs. State Of Gujarat

Facts

The petitioner, R J Enterprise, filed a writ application before the Gujarat High Court challenging an order dated 24.09.2018 passed by the Assistant State Tax Commissioner (Enforcement) Division-10, Rajkot. This order provisionally attached the petitioner's bank account (No. 50200021304445 with HDFC Bank Limited, Gondal) under Section 83 of the Gujarat Goods and Services Tax Act, 2017. The petitioner sought to quash this order and sought directions to lift the attachment and permit operation of the bank account. The revenue was represented by the State of Gujarat.

Held

The Court noted that the impugned order of provisional attachment was dated 24th September 2018. Referring to Section 83(2) of the Gujarat Goods and Services Tax Act, 2017, which stipulates that every provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order, the Court observed that the attachment order had indeed expired. The revenue confirmed that the order had not been renewed and no fresh order was passed. Consequently, the Court held that as of the date of the hearing, the petitioner's bank account could not be considered under attachment. The Court directed HDFC Bank Ltd., Gondal, to permit the writ-applicant to operate his bank account. The writ-application was disposed of with the rule made absolute to this extent.

Key Issues

1. Whether the provisional attachment order dated 24.09.2018, issued under Section 83 of the Gujarat Goods and Services Tax Act, 2017, remains legally effective given the statutory period of validity. The petitioner argued that the impugned order of provisional attachment has outlived its statutory life. The revenue, through the learned Assistant Government Pleader, after taking instructions, stated that the order of provisional attachment has not been renewed and no fresh order has been passed.