A1 Adil Traders Vs Union of India (Telangana High Court)
The writ petition was filed before the Telangana High Court challenging the provisional attachment of three bank accounts of the petitioner under Section 83(1) of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner sought a writ of mandamus to declare the issuance of Form GST DRC-22 dated 06.11.2024 and 11.11.2024, as well as a subsequent letter dated 15.01.2025, as void, arbitrary, illegal, without jurisdiction, and violative of Articles 14, 19(1)(g), and 265 of the Constitution of India. The attachments were issued to Axis Bank, HDFC Bank, and Gayatri Bank in respect of specified bank accounts of the petitioner.
By an earlier order dated 20.08.2025, the High Court had already set aside the provisional attachment of one bank account maintained with Axis Bank. However, the provisional attachments in respect of the other two bank accounts, maintained with HDFC Bank and Gayatri Bank, continued to remain in force.
The Court examined the statutory framework governing provisional attachment under the CGST regime. Section 83(1) of the CGST Act empowers the Commissioner to provisionally attach property, including bank accounts, after initiation of proceedings under specified chapters of the Act, if such attachment is considered necessary to protect the interest of government revenue. However, Section 83(2) clearly provides that every such provisional attachment shall cease to have effect after the expiry of one year from the date of the order.
