Provisional GST Section 83 Attachment Automatically Ceases After One Year: Madras HC

Veerapandi Vs Union of India (Madras High Court)

The Madras High Court allowed a writ petition challenging proceedings dated 21.02.2025 issued under Section 83 of the Central Goods and Services Tax Act, 2017, which resulted in the freezing of the petitioner’s savings bank account maintained with Tamil Nadu Mercantile Bank, Paramakudi Branch. The petitioner sought quashing of the impugned proceedings and a direction to the concerned respondents to defreeze the account and permit its operation.

The petitioner submitted that he was engaged in agricultural activities and that his wife operated a registered footwear business under the name “Singapore Shoe Mart”. He stated that the bank account was maintained from his lawful earnings for meeting his family’s day-to-day and educational expenses. According to the petitioner, the bank informed him on 21.02.2025 that the account had been frozen pursuant to proceedings issued by the first respondent under Section 83 of the CGST Act.

Relying on Section 83(2) of the CGST Act, 2017, the petitioner submitted that provisional attachment of a bank account remains valid only for one year, after which the attachment automatically ceases to have effect. He also relied upon an order of the Delhi High Court dated 12.09.2025 in W.P.(C) No.10398 of 2024 and C.M. Application No.42732 of 2024. The Central Government Standing Counsel appearing for the first respondent fairly submitted that the factual aspects stated by the petitioner were not disputed.