Viraaj Steels Vs Directorate General of GST Intelligence Gurugram Zonal Unit & Anr. (Delhi High Court)
The petitioner filed writ petitions seeking quashing of the provisional attachment order dated 25.02.2025 issued under Section 83 of the Central Goods and Services Tax Act, 2017 in respect of its bank account maintained with Axis Bank and a direction to the bank to de-freeze the account. The petitioner contended that the provisional attachment had ceased to operate upon expiry of one year under Section 83(2) of the CGST Act, 2017, but the account continued to remain frozen. During the hearing, it was brought to the Court’s notice that the Directorate General of GST Intelligence, Gurugram Zonal Unit had issued Form GST DRC-23 dated 20.04.2026 directing restoration of the provisionally attached bank account, stating that attachment of the account was no longer required. The petitioner, however, submitted that despite this communication, Axis Bank had not made the account operational. Taking note of the DGGI communication, the Delhi High Court held that the principal relief sought in the writ petitions no longer survived. The Court directed Axis Bank to take all consequential steps to restore and de-freeze the petitioner’s bank account forthwith, if it had not already been restored, unless the account was under attachment pursuant to any other valid order passed by a competent authority. In view of the subsequent development, the writ petitions and all pending applications were disposed of as infructuous.
