📰 𝗕𝗼𝗺𝗯𝗮𝘆 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗕𝗮𝗻𝗸 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗔𝘁𝘁𝗮𝗰𝗵𝗺𝗲𝗻𝘁 𝗖𝗲𝗮𝘀𝗲𝘀 𝗔𝗳𝘁𝗲𝗿 𝟭 𝗬𝗲𝗮𝗿 𝗨𝗻𝗱𝗲𝗿 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟴𝟯, 𝗥𝗲𝗶𝗻𝗳𝗼𝗿𝗰𝗶𝗻𝗴 𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁 𝗣𝗿𝗲𝗰𝗲𝗱𝗲𝗻𝘁

📢 The court held, "The Commissioner’s power under Section 83 to attach bank accounts expires after one year if no new facts are presented, regardless of jurisdictional location of the individuals involved in the tax matter."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Bharat Parihar, Kishan Lal Bunkar, Sunbright Designers Pvt. Ltd. vs Union of India • 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿𝘀: WRIT PETITION NO.3742 OF 2023, WRIT PETITION NO.3744 OF 2023, WRIT PETITION NO.3905 OF 2023 • 𝗖𝗼𝘂𝗿𝘁: Bombay High Court • 𝗗𝗮𝘁𝗲: 30-Jun-2023

𝗜𝘀𝘀𝘂𝗲: On 21-Apr-2022, a provisional attachment order was issued, attaching the petitioners' bank account at Yes Bank in Mumbai under Section 83 of the CGST Act. Nearly a year later, on 19-Apr-2023, the department extended the attachment with a fresh communication. The petitioners filed writ petitions challenging the extension, arguing that the attachment was legally unsustainable after one year due to the Supreme Court’s ruling in Radha Krishna Industries. The department countered, asserting that such orders were appealable under Section 107, hence not eligible for writ intervention.

𝗖𝗼𝘂𝗿𝘁’𝘀 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: The Bombay High Court supported the petitioners' view, acknowledging the Supreme Court precedent in Radha Krishna Industries, which limits provisional attachments under Section 83 to one year if no new facts arise. The High Court held that the Commissioner’s jurisdiction under Section 83 applies to any individual involved in tax-related transactions, regardless of their location.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Bombay High Court quashed the continuation of the bank attachment, ruling that the power under Section 83 had lapsed after one year. The court affirmed the precedent established by the Supreme Court, dismissing the department’s position against writ intervention.

📜 This judgment emphasizes adherence to statutory limitations on provisional attachment and reinforces the Bombay High Court’s alignment with the Supreme Court’s stance on preventing prolonged, unwarranted asset freezes. It affirms judicial support for fair procedural limits in tax enforcement. Team GSTpanacea 7503031378