Facts of the Case

The petitioner, M.Sarada, proprietor of Indus Enterprises, challenged the continuing provisional attachment of her business bank account with Bank of Baroda, Tirupati, effected by an order dated 08.02.2024 of the Directorate General of GST Intelligence. The petitioner approached the Andhra Pradesh High Court contending that the statutory one-year period for such provisional attachment had expired, and sought a direction permitting her to operate the account.

Issues Involved

  1. Whether continued provisional attachment of a bank account beyond the one-year period prescribed under the GST law is sustainable.

Petitioner's Arguments

  • The provisional attachment order dated 08.02.2024 ought to be set aside since the one-year period provided under the statute for such attachment had already expired.

Respondent's Arguments

  • The Standing Counsel for CBIC submitted that the respondent authorities were themselves taking steps to de-freeze the petitioner's current account.

Court Order / Findings

  • In view of the Standing Counsel's statement that de-freezing steps were underway, the Court closed the writ petition, recording the statement, without further adjudicating the legal question on merits, with no order as to costs.

Important Clarification

  • Provisional attachment of a bank account or property under the GST law is time-limited by statute; once the prescribed one-year period lapses, the attachment ceases to have effect and the account is liable to be de-frozen, a position the department itself acknowledged in this case rather than contesting it.

Sections Involved

  • Section 83, CGST Act, 2017 – provisional attachment of property (including bank accounts) to protect revenue, subject to a one-year time limit under Section 83(2).
  • Section 151 CPC – inherent powers invoked for interim relief seeking release of the bank account.

Decision – In Favour of

The decision is in favour of the assessee. The writ petition was closed on the department's own statement that the bank account attachment, having exceeded the one-year statutory period, was being lifted.

Case Details

Court: High Court of Andhra Pradesh, Amaravati — Case No.: Writ Petition No. 14617 of 2025 — Coram: Justice R. Raghunandan Rao and Justice Sumathi Jagadam — Date of Order: 25 June 2025.

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