Section 83 of the CGST Act, 2017—Provisional Attachment of Bank Account—rejection of Sale Certificate -- The petitioner challenged an order dated 17.10.2022, rejecting the request of the petitioner for registration of the Sale Certificate. The petitioner Bank is a secured creditor of the property which was mortgaged on 19.10.2017. The loan account was classified as N.P.A. and action was initiated under the SARFAESI Act. Consequently, the property was sold through a public auction, and a sale certificate was also issued on 09.09.2022.The impugned order was passed rejecting the request of the petitioner for registration of Sale Certificate on the sole ground that property was provisionally attached under Sec.83 of the Act on 18.12.2021. The counsel for the petitioner contended that the attachment has lapsed by operation of law itself, as any provisional attachment passed under Sec.83(1) of the Act will continue only for a period of one year and not thereafter. The court observed that the petitioner was a prior mortgagee in the year 2017, whereas the provisional attachment was passed on 18.12.2021. This order has already lapsed by operation of law. This Court has held that the first proviso to Rule 55-A has been found to be invalid and ultra vires, the respondent cannot refuse to register the document placing reliance on the aforesaid proviso. There is no material to show any final order of attachment, or any subsequent order passed pursuant to the aforesaid order. The respondent cannot refuse to register the Sale Certificate as sought for by the petitioner.

Held that:- The Hon’ble High Court quashed the order and directed the first respondent to register the Sale certificate within a period of 15 days.