GST Bank Attachment Automatically Lapses After One Year: Delhi HC

By CA Sandeep Kanoi Goods and Services Tax Judiciary August 21, 2026

TaxGuru Citation: 2026 taxguru.in 11382
Case Name: Zubair Enterprises Vs Commissioner CGST And Central Excise (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

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Zubair Enterprises Vs Commissioner CGST And Central Excise (Delhi High Court)

Summary: The Delhi High Court held that provisional attachment of bank accounts under Section 83(2) of the CGST Act, 2017 cannot continue beyond one year from the date of the attachment order. In the present case, the provisional attachment was ordered on 09.03.2021 and the one-year period had already expired. The respondent did not dispute this position.

The Court therefore directed the bank to de-freeze the petitioner’s two bank accounts. It further issued directions to authorities exercising powers under Section 83, requiring provisional attachment orders to expressly state their maximum one-year duration, and directing banks and financial institutions to de-freeze attached accounts after one year unless a fresh, valid attachment order is served. The Reserve Bank of India was also directed to issue an appropriate circular to scheduled banks and financial institutions.

The Court noted that a large number of writ petitions were being filed seeking de-freezing of bank accounts after the expiry of the statutory one-year period.