Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account

The Rajasthan High Court allowed a tax assessee to operate its bank account after ruling that a provisional attachment under Section 83 of the GST Act automatically ceases after one year. In this case, the petitioner challenged the prolonged attachment of the bank account, arguing that it was beyond the statutory timeline. The court agreed, highlighting that the attachment's purpose is to secure revenue interests but must adhere to legal limits. The High Court stated that extending the attachment without justification undermines taxpayers' rights and financial freedom. It directed the authorities to release the attachment and permitted the petitioner to use the funds. This judgment underscores the importance of balancing revenue safeguarding and taxpayers' rights, ensuring compliance with statutory timelines in provisional attachment cases under GST law.