GST / Indirect Tax : Attachment of Bank Account by Department and Legality of Such Action

GST / Indirect Tax : Attachment of Bank Account by Tax Department and Legality of Such Action 

In case of Kanta Food Product v. Union of India [2025] GCtR 1562 (Delhi) it was held that when the time has lapsed in terms of Section 83(2) of the Central Goods and Service Tax Act, 2017, the attachment of the bank account by Tax Department is to be set aside.

In this case, the Petitioner was engaged in the manufacture of food products and was served with the Show Cause Notice on 2nd February, 2024. In respect of the said SCN, the bank account of the Petitioner was attached vide order dated 7th March, 2024.  The submission on behalf of the Petitioner is that under Section 83 of the Central Goods and Service Tax Act, 2017, the attachment cannot continue beyond one year.