Section 83 of the CGST Act, 2017 — Provisional attachment of bank account –-- The petitioner challenged the provisional attachment of bank account of the petitioner on 02.12.2019 and again on 08.12.2021 under Section 83 of the Act. The counsel for the petitioner submitted that by lapse of time, both the provisional attachment orders are no longer valid as on today. The counsel for respondents submitted that investigations are ongoing against the petitioner under Section 67.  It was for that reason that the bank account of the petitioner was provisionally attached. The court observed that Attachment of bank account is a serious measure which has the effect of not only adversely affecting property rights of such person but is also an intrusion into his privacy. The power being drastic, it has to be exercised by a high authority like the Commissioner. However, the condition precedent for exercise of such power is that proceedings under Sections 62, 63, 64, 67, 73 or 74 should be pending against the taxable person. However, being a coercive provision legislature has ensured that duration of provisional attachment does not exceed a period of one year. Both the provisional attachment orders dated 02.12.2019 and 08.12.2021 have spent their force. Such provisional attachment orders cannot therefore be allowed to continue beyond the period prescribed under the statute.

Held that:- The Hon’ble High Court set aside the provisional attachment orders dated 02.12.2019 and 08.12.2021.