Second provisional attachment under section 83 unlawful as initial order lapsed by statutory limitation.

CA Narender Gupta | 24 Nov, 2025

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Facts of the Case:

The petitioner's bank accounts were provisionally attached under Section 83 of the CGST/KGST Act by an order dated 21.02.2024.
Under Section 83(2), any provisional attachment automatically ceases after one year.Therefore, the first attachment lapsed at midnight on 20.02.2025.
Immediately on the next day, 21.02.2025, the department issued a second provisional attachment order attaching the same bank accounts.
The petitioner challenged this second order before the Karnataka High Court.

Petitioner's Contention:

Section 83(2) clearly provides that a provisional attachment lapses after one year, and the law does not allow a fresh attachment on the same grounds immediately after expiry.
The second order is without jurisdiction, arbitrary, and defeats the statutory safeguard.
Provisional attachment is a draconian measure and must be strictly construed.
- Relied on the Supreme Court judgment in Kesari Nandan Mobile v. ACST which held that the department cannot issue a fresh attachment order on substantially the same grounds once the earlier attachment has lapsed by efflux of time.

Held:

Section 83(2) mandates automatic cessation of any provisional attachment after one
The statute does not permit issuing a fresh attachment order on the same basis immediately after expiry.
The department lacked jurisdiction to issue the second order dated 21.02.2025.
Section 83 is a harsh and draconian power, and therefore cannot be interpreted to grant additional authority to the department beyond what is explicitly provided The court relied on Kesari Nandan Mobile (SC), which ruled that fresh attachments after expiry of one year are impermissible if based on the same grounds.
Since the first attachment had lapsed by operation of law, the second attachment was illegal, arbitrary, and void
The impugned order was quashed, but the department was given liberty to take other proceedings as per law, except under Section 83.