Supreme Court Bars Renewal of Provisional Attachment Under CGST Act After One-Year Expiry

• The Supreme Court ruled that provisional attachment orders under Section 83 of the CGST Act, 2017 cannot be renewed or re-issued on the same grounds after the one-year period lapses.
• The Court emphasized that the CGST Act does not allow for extension or renewal of such orders, unlike some other tax statutes.
• Provisional attachment is a pre-emptive measure, not a recovery tool, and must be exercised strictly as per statutory conditions.
• Issuing repeated attachment orders after expiry would undermine the one-year limitation and constitute an abuse of due process.
• The judgment protects taxpayers from indefinite asset freezing, upholds statutory safeguards, and is expected to reduce repetitive litigation.

Source: trilegal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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