RHC Global Exports Private Limited & Ors. Vs Union of India & Ors. (Supreme Court of India)
Summary: In the case of RHC Global Exports Pvt. Ltd. & Ors. v. Union of India, the Supreme Court addressed the legality of reattaching bank accounts after an initial attachment had expired. The applicant, engaged in the gem and jewelry business in Surat’s Special Economic Zone, faced attachment of three bank accounts due to provisions under the Central Goods and Services Tax Act, 2017 (CGST Act). While two of the accounts were confirmed as no longer attached, the third account had been reattached after the initial attachment lapsed. The applicant contended that once the attachment expired, the tax authorities lacked the jurisdiction to reattach the account, leading to the present legal challenge.
Introduction: The Supreme Court concluded that the reattachment of the bank account violated the provisions of the CGST Act. It directed the tax authorities to lift the attachment and defreeze the bank account, as the renewal of the attachment lacked lawful basis. The Court also referenced a recent advisory circular that clarified the procedures surrounding the provisional attachment of property under the CGST Act, emphasizing the importance of adhering to statutory time frames for attachments. This ruling highlights the need for tax authorities to operate within the confines of the law, ensuring that procedural guidelines are respected when dealing with taxpayers’ assets.
