Tag: bank attachment

ArticleGST Article

No attachment of bank account after statutory pre-deposit of 10% of the disputed tax demand under Section 107 of the GST Act

byCA Bimal Jain

The Hon’ble Andhra Pradesh High Court in the case of Wingtech Mobile Communications India Pvt. Ltd. held that the recovery and attachment of bank accounts after payment of the statutory pre-deposit of 10% of the disputed GST demand under Section 107 of the CGST Act, is impermissible, and directed the Respondents to refund the excess amount recovered, subject to safeguards protecting revenue interests.

GST ArticleHigh Court

Provisional attachment order of bank account under Section 83 effective only for one year

byCA Bimal Jain

The Hon’ble Telangana High Court in the case of Aarush Enterprises 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.

GST ArticleSupreme Court

Bank Accounts can be defreezed, which were reattached after Lapse

byCA Bimal Jain

The Hon’ble Supreme Court in the case of RHC Global Exports Pvt. Ltd. & Ors. allowed the application and directed ‘lifting’ and ‘defreezing’ of bank account attachment. Although, attachment had lapsed, there has been a renewal of attachment. Hence, directed to unfreeze the bank account that was previously frozen (blocked from access) and had been re-attached or frozen again after the original freeze had expired.