C/SCA/2716/2020 JUDGMENT IN HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 2716 of 2020 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA 1 Whether Reporters of Local Papers may be allowed to see judgment ? 2 To be referred to Reporter or not ? 3 Whether their Lordships wish to see fair copy of judgment ? 4 Whether this case involves substantial question of law as to interpretation of Constitution of India or any order made thereunder ? BADAL SHAMBHUBHAI SHAH Versus DIRECTORATE GENERAL OF GOODS AND SERVICE TAX INTELLIGENCE, ZONAL UNIT, AHMEDABAD Appearance: MR CHETAN K PANDYA(1973) for Petitioner(s) No. 1 MR ANKIT SHAH(6371) for Respondent(s) No. 2 MR DEVANG VYAS(2794) for Respondent(s) No. 1 MR PS GOGIA(2751) for Respondent(s) No. 4 NOTICE SERVED BY DS(5) for Respondent(s) No. 3 CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 05/03/2020 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE BHARGAV D. KARIA) 1. Rule, returnable forthwith. Mr.Devang Vyas, learned Assistant Solicitor General waives service of Page 1 of 5 Downloaded on : Thu Jul 01 11:38:24 IST 2021 C/SCA/2716/2020 JUDGMENT notice of rule for and on behalf of respondent Nos.1,2 and 3. 2. By this petition under Article 226 of Constitution of India, petitioner has prayed for following reliefs: (a) To issue Writ of Mandamus and/or Writ of Certiorari and/or any other appropriate writ, order or direction, quashing and setting aside direction issued by respondent Nos.1 and 2 dated 10/01/2019 at Annexure-B to this petition and also action of provisionally attaching or Debit Freezing under Section 83 of CGST Act, 2017 petitioner s Current Account No.483301010036115 & Saving Bank Account No. 483302010046998 maintained with Union Bank of India maintained with respondent No.3 and Current Account No.918020099540135 maintained with respondent No.4. (b) Pending admission, final hearing and disposal of this petition, to stay direction issued by respondent Nos.1 and 2 of provisionally attaching or Debit Freezing petitioner s Current Account No.483301010036115 & Saving Bank Account No.483302010046998 maintained with Union Bank of India maintained with respondent No.3 and Current Account No.918020099540135 maintained with respondent No.4 on such terms and conditions as may be deemed fit and proper to this Hon ble Court. (C) To pass any other and further orders as may be deemed fit and proper in interest of justice and petitioner. 3. short question that arises for our consideration is whether after expiry of period of one year from date of passing of Page 2 of 5 Downloaded on : Thu Jul 01 11:38:24 IST 2021 C/SCA/2716/2020 JUDGMENT provisional attachment order, under Section 83 of Central Goods and Service Tax Act, 2017 (for short Act, 2017 ), attachment over bank account of petitioner can continue? 4. provision of Sub-section (2) of Section 83 of Act, 2017 is very clear in this regard. No attachment over bank account can continue after period of one year from date of passing of order under Section 83 of Act, 2017, unless such order is renewed or fresh order is passed by authority. 5. We need not state facts in detail as order, under Section 83 of Act, 2017, for provisional attachment of bank accounts of petitioner with respondents No.3 and 4 Banks was passed on 10th January, 2019 and period of one year is over on 10th January, 2020. Therefore impugned order has lapsed on completion of one year. 6. However, Mr.Devang Vyas, learned Assistant Solicitor General appearing for respondent Nos.1, 2 and 3, in peculiar facts of case, submitted that petitioner was arrested and on condition of deposit of Rs.50 Lakhs, bail was granted to petitioner by trial Court. However, petitioner has challenged such condition of granting bail before this Court for modification and Criminal Misc. Application No.3070 of 2019 is pending before learned Single Judge of this Court. He therefore Page 3 of 5 Downloaded on : Thu Jul 01 11:38:24 IST 2021 C/SCA/2716/2020 JUDGMENT submitted that keeping in mind interest of Revenue, appropriate order may be passed. 7. In response to aforesaid submission, Mr.Chetan K. Pandya for petitioner submitted that petitioner has already submitted application on 22nd January, 2020 before Director General of Goods and Service Tax Intelligence, Ahmedabad, intimating that petitioner is ready and willing to issue Fixed Deposit amounting to Rs.50 Lakhs in his name and is also willing to handover original receipt of Fixed Deposit to respondent. 8. In view of aforesaid submission, Mr.Devang Vyas, learned Assistant Solicitor General has agreed to accept such original receipt of Fixed Deposit amounting to Rs.50 Lakhs, so as to lift attachment over bank accounts of petitioner. 9. In view of consensus arrived at between parties, respondent Nos.3 and 4-Banks are directed to lift attachment over accounts of petitioner, placed by respondent No.1, by virtue of order dated 10.01.2019 passed under Section 83 of Act, 2017. petitioner shall handover original receipt of Fixed Deposit of Rs.50 Lakhs to be issued in his name to respondent subject to outcome of Criminal Misc. Application No.3070 of 2019. 10. With above, petition stands disposed of Page 4 of 5 Downloaded on : Thu Jul 01 11:38:24 IST 2021 C/SCA/2716/2020 JUDGMENT accordingly. Rule is made absolute to aforesaid extent. Direct service is permitted. (J. B. PARDIWALA, J) (BHARGAV D. KARIA, J) PALAK Page 5 of 5 Downloaded on : Thu Jul 01 11:38:24 IST 2021 Badal Shambhubhai Shah v. Directorate General of Goods And Service Tax Intelligence Zonal Unit, Ahmedabad