GST Bank Account Freeze Invalid After Statutory One-Year Period: Delhi HC

Shagun Goel Vs Directorate General of GST Intelligence & Anr. (Delhi High Court)

The Delhi High Court considered a writ petition challenging the continued operation of a provisional attachment order passed under Section 83 of the Central Goods and Services Tax Act, 2017. The impugned order dated 3rd June 2024 had provisionally attached Bank Account No. 135605500936 (IFSC: ICIC0006295), resulting in an embargo on the petitioner’s right to operate the account.

The petitioner relied on Section 83(2) of the Act, which provides that a provisional attachment shall cease to operate after the expiry of one year from the date of the order. Since the attachment order was issued on 3rd June 2024, it was contended that it ceased to operate on 2nd June 2025. The Court observed that although the statutory period had expired, the bank and the respondent authorities had failed to act in accordance with Section 83(2).

The respondent submitted that proceedings were still continuing and requested the Court to pass an order in accordance with law. The Court noted that provisional attachment under Section 83(1) is valid only for one year from the date of the order. If recovery proceedings are not effected within that period, the attachment ceases to operate by virtue of Section 83(2).