Facts of the Case

The petitioners filed writ petitions before the Delhi High Court challenging the provisional attachment of their bank accounts by the Directorate General of GST Intelligence (DGGI). During the hearing, counsel appearing for the petitioners informed the Court that the concerned banks had already lifted the provisional attachment orders in respect of the subject bank accounts. Consequently, the principal grievance raised in the writ petitions no longer survived. The petitioners, therefore, chose not to press the remaining reliefs sought in the petitions.

Issues Involved

  1. Whether the writ petitions challenging the provisional attachment of bank accounts survive after the attachment orders are lifted.
  2. Whether any further adjudication is required when the principal grievance of the petitioners stands redressed.

Petitioners’ Arguments

  • The petitioners had challenged the provisional attachment of their bank accounts.
  • During the hearing, it was submitted that the banks had already removed the provisional attachment.
  • Since the primary grievance no longer existed, the petitioners did not wish to pursue the remaining prayers contained in the writ petitions.

 Respondents’ Arguments

The respondents appeared through the Revenue's Senior Standing Counsel. Since the provisional attachment had already been lifted and the petitioners did not press the petitions further, no substantive dispute remained for adjudication before the Court.

 Court Order / Findings

The Delhi High Court recorded the statement made on behalf of the petitioners that the provisional attachment orders concerning the bank accounts had already been lifted and that the petitioners did not wish to press the remaining reliefs sought in the writ petitions.

Accordingly, the Court closed all the writ petitions and directed that all pending applications shall also stand closed. The Court did not examine the merits of the controversy since the principal grievance had already been resolved.

 Important Clarification

  • Once the provisional attachment of the bank accounts was withdrawn, the principal grievance of the petitioners ceased to exist.
  • The Delhi High Court closed the writ petitions without adjudicating the merits of the dispute.
  • The order does not decide the legality of the provisional attachment under Section 83 of the CGST Act but merely records that the cause of action no longer survived due to withdrawal of the attachment.

 Section Involved

Section 83 of the Central Goods and Services Tax Act, 2017 – Provisional Attachment to Protect Revenue.
Section 83 of the Central Goods and Services Tax Act, 2017 – Provisional Attachment to Protect Revenue.

Link to Download the Order https://mytaxexpert.co.in/uploads/1785134713_2011compressed.pdf

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