Bank Accounts can be defreezed, which were reattached after Lapse

Last updated: 05 October 2024

Quick Summary

The Supreme Court has ruled that bank accounts provisionally attached under the CGST Act can be defreezed if they were reattached after the initial attachment period had expired. In a specific case, the court ordered the lifting of attachment on a bank account that had lapsed and was subsequently re-attached, stating that such re-attachment lacked legal authority. This decision clarifies the application of Section 83(2) of the CGST Act regarding the duration of provisional attachments.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in the case of RHC Global Exports Pvt. Ltd. & Ors. v. Union of India [SLP(C) No. 015992 - 015994 / 2023 dated September 18, 2024] 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.

Citation :
SLP(C) No. 015992 - 015994 / 2023 dated September 18, 2024

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