Aarush Enterprises Vs Commissioner (Telangana High Court)
Summary: In Aarush Enterprises v. Commissioner, the Telangana High Court addressed the validity of a provisional attachment of a bank account under Section 83 of the Central Goods and Services Tax Act (CGST Act). The petitioner challenged an order dated May 19, 2023, which provisionally attached their bank account, arguing that the attachment would lose its effect after one year, as stipulated in Section 83(2) of the CGST Act. The Court agreed, stating that the language of Section 83(2) is mandatory and confirmed that the provisional attachment order indeed ceased to be effective after one year from its issuance. The judgment emphasized that while the attachment was invalidated, it did not prevent the authorities from taking lawful action against the petitioner in the future.
The Hon’ble Telangana High Court in the case of Aarush Enterprises v. Commissioner [W.P. No. 14809 of 2024 dated July 02, 2024] set aside the order of provisional attachment of bank account under Section 83(1) of the Central Goods and Services Tax Act (“the CGST Act”), taking into consideration sub-section (2) of Section 83 of the CGST Act, which clearly states that the provisional attachment passed under the aforesaid provision would be valid for a period of one year only.
