Bank Attachment & Blocking of Electronic GST credit ledger shall have Effect till 1 Year Only

The writ petition was filed by the Taxpayer challenging the order dated 16^th March 2020, whereby Petitioner’s current bank account maintained with Union Bank of India has been provisionally attached as well as the order dated 6^th February 2020 blocking the Petitioner’s Electronic Credit Ledger.

Learned counsel for the petitioner states that in accordance with Rule 86A(3) of the CGST Rules, 2017, the order blocking the Petitioner’s Electronic Credit Ledger had ceased to operate on 5th February, 2021 on completion of one year. However, the same continues to be blocked and, thus, the Petitioner is unable to operate it. In support of her submissions, she relies on the orders of various High Courts where it has been held that Rule 86A(3) is a restriction which will cease to have effect after the expiry of one year from the date of imposing such restriction.

Similarly, learned counsel for the petitioner states that as per Section 83(2) of the CGST Act, 2017, the impugned provisional attachment order has lapsed upon completion of one year from the date on which the order was passed.

However, she states that even though the attachment order has ceased to have effect, the Petitioner’s bank account remains attached to this date.

Courts Order

In view of the aforesaid statement, the present writ petition along with pending application is disposed of with the directions to the respondents to de-freeze the petitioner’s bank account No.508502010001156 maintained with M/s.Union Bank of India, 16, Hargobind Enclave, Karkardooma, Delhi-110092 as well as unblock the Electronic Credit Ledger within three working days of uploading of the present order.