Chief Justice Manindra Mohan Shrivastava and Justice Sunder Mohan clarified that the grievance regarding bank recovery was misconceived, as the SARFAESI proceedings had only reached the Section 13(2) notice stage, which was not challenged. i act /Attachment GST S. 83 Lapses Force after One Year, Cannot be Invoked to Challenge SARFAESI

Top Home »Top Stories »Attachment GST S. 83… Attachment GST S. 83 Lapses Force after One Year, Cannot be Invoked to Challenge SARFAESI Proceedings: Madras HC [Read Order] The provisional attachment order passed by the first respondent in exercise of powers under Section 83 of the CGST Act could not be made a basis to challenge any SARFAESI action , said the court. By – Navasree A.M | 9 Aug 2025 11:50 AM The Madras High Court has held that a provisional attachment order under Section 83 of the Central Goods and Services Tax ( CGST ) Act, 2017 automatically ceases to have effect after one year and cannot be relied upon to challenge or restrain proceedings initiated by a secured creditor under the SARFAESI Act, 2002. The petitioner, K. Venkatesan a proprietor whose bank account had been provisionally attached by the Directorate General of GST Intelligence (DGGI) on 23 February 2021, approached the Court seeking to prevent City Union Bank from initiating SARFAESI recovery measures, contending that the continuing effect of the attachment was illegal. Complete Ready to Use PDFs of 200+ Agreements Click here The Division Bench of Chief Justice Manindra Mohan Shrivastava and Justice Sunder Mohan clarified that the grievance regarding bank recovery was misconceived, as the SARFAESI proceedings had only reached the Section 13(2) notice stage, which was not challenged. Also Read:Orissa High Court Excuses 15-Day Delay in Filing Appeal Over Limitation Miscalculation [Read Order] The Court observed that “The provisional attachment order passed by the first respondent in exercise of powers under Section 83 of the CGST Act could not be made a basis to challenge any action that may be taken in future or any order passed towards recovery of loan under the SARFAESI Act. Therefore, the prayer to that extent is misconceived and, therefore, rejected.” The Bench interpreted Section 83 to mean that the “life of a provisional attachment order is only for a period of one year and thereafter it attains its natural demise and loses its effect.” Since no successive attachment order had been issued after February 2021, the attachment stood terminated in law. Know the complete aspects of tax implications of succession, Click here The court, ruling that the petitioner’s account “in the eye of law, stands de-attached/defreezed,” allowed him to operate it freely. At the same time, it made it clear that the order would not prevent the bank from pursuing lawful recovery steps under the SARFAESI Act, nor did it decide on the merits of any tax liability arising from reversal of credit orders passed by the GST authorities. Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates Subscribe Taxscan Premium to view the Judgment Navasree A.M Navasree A M, B.B.A., LL.B. (Hons), a lawyer with over 2.5 years of experience as a researcher and content writer at Taxscan, specializing in Indirect Taxes and Corporate Laws. CGST Act SARFAESI Act GST authorities Related Stories Non-Intimation by Tax Practitioner Causes Appeal Delay: ITAT Condones 1249-Day Delay, Quashes… 9 Aug 2025 9:12 PM NIRC of ICMAI Elects CMA Rakesh Yadav as Chairman, Announces Full Leadership Team for 2025-26 9 Aug 2025 8:40 PM Holding Foreign Investments or Bank Accounts? Must Know Income Tax Compliance for NRI Students 9 Aug 2025 6:16 PM Centre Notifies The Carriage of Goods By Sea Act, 2025: Key Changes for Maritime Trade [Read Act] 9 Aug 2025 5:20 PM CESTAT Weekly Round-up 9 Aug 2025 5:00 PM Duplication of GST demand by Central Dept on Fake ITC: Delhi HC Refuses to Entertain Writ, Directs… 9 Aug 2025 4:46 PM SEBI Removes ₹10,000 Minimum Subscription Requirement for Mutual Fund Distributor Transaction… 9 Aug 2025 4:19 PM Delay in Departmental Enquiry Cannot Hold Promotions: AP HC Orders to Consider Promotion of… 9 Aug 2025 4:00 PM Whether JAO Can Issue Income Tax Reassessment Notice after Introduction of Faceless Assessment… 9 Aug 2025 3:58 PM Supreme Court to Decide on Retrospective Applicability of Section 5 of Amended Benami Property Act 9 Aug 2025 3:41 PM Onus to Prove Sundry Creditor Payments Within 180 Days Before GST Authorities Lies with Company,… 9 Aug 2025 3:10 PM AAR and AAAR Weekly Round Up 9 Aug 2025 2:46 PM Quick Links Top Stories News Updates Columns Interviews CST & VAT / GST Corporate Laws Other Taxations Events Scan Income Tax Service Tax Excise & Customs International Taxation Domestic Taxation Firms Scan Job Scan Know More About Us Careers Advertise Privacy Policy Terms and Conditions Contact Us Get news delivered to your in-box. Subscribe to our newsletter. © 2025 Taxscan. All rights reserved. Powered by Blink CMS Login Subscribe Now

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