Facts of the Case

M/S VK Enterprises, through its proprietor Sh. Vijay Chopra, challenged a Provisional Attachment order dated 27th April, 2024, passed by the Directorate General of GST Intelligence, Gurugram Zonal Unit (DGGI), under Section 83 of the CGST Act, 2017, by which the petitioner's bank account with Canara Bank, Paharganj Branch, had been attached. The petitioner's principal contention was that the statutory one-year period for which a provisional attachment can subsist under Section 83(2) had already lapsed.

Issues Involved

  1. Whether a provisional attachment order under Section 83 automatically ceases to have effect once the one-year period prescribed in Section 83(2) expires.
  2. What relief follows where the Department itself withdraws the attachment after the statutory period has lapsed.

Petitioner's Arguments

  • The one-year period for which the bank account could remain provisionally attached under Section 83 had already lapsed, and the attachment could not continue.

Respondent's Arguments

  • Upon instructions, learned Senior Standing Counsel for the Department informed the Court that DGGI had, by communication dated 12th November, 2025, restored the subject bank account and withdrawn the provisional attachment order, placing a copy of that letter on record.

Court Order / Findings

  • The Court recorded the Department's letter withdrawing the attachment on record.
  • The Canara Bank, Paharganj Branch, was directed to permit the petitioner to operate the bank account without any further orders from DGGI.
  • Since the attachment order already stood withdrawn, no further orders were called for on the merits, and the petition was disposed of in these terms.

Important Clarification

  • A provisional attachment under Section 83 of the CGST Act does not survive beyond the one-year period fixed in Section 83(2); once that period lapses, the taxpayer's bank account is required to be released and can be freely operated without any further order from the attaching authority.
  • Where the Department itself withdraws an attachment upon this ground being raised, courts will simply direct the bank to permit unconditional operation of the account rather than proceeding to an adjudication on merits.

Sections Involved

  • Section 83, CGST Act, 2017 – provisional attachment of property to protect government revenue during pendency of specified proceedings.
  • Section 83(2), CGST Act, 2017 – automatic lapse of a provisional attachment after one year from the date of the order.

Decision – In Favour of

Decided in favour of the Assessee. The attachment stood withdrawn, and the bank account was directed to be operated freely.

Case Details

  • Court: High Court of Delhi at New Delhi
  • Case No.: W.P.(C) 17012/2025
  • Coram: Justice Prathiba M. Singh and Justice Mini Pushkarna
  • Date of Order: 27 November 2025

Link to Download the Order

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