GST Update

Desk of CA. Praveen Sharma – 901 Series (CAPS)

Bombay High Court in the case of Creative Carve Pvt. Ltd.

The petitioner challenged the provisional attachment of its HDFC Bank operational account under Section 83 of the Maharashtra GST Act, 2017, stating that the attachment had severely affected day-to-day business activities.

The petitioner offered an alternative security by voluntarily placing two fixed deposits of nearly ?15 crore for attachment instead of the running bank account.

It was explained that continuation of the bank account attachment was disrupting salary payments and routine business expenses, resulting in undue hardship.

The petitioner also agreed that it would not press the challenge to the attachment order if the adjudication proceedings were completed within a fixed and reasonable time frame.

The Court observed that the offer made by the petitioner was fair and proportionate, especially since the alleged provisional tax exposure was around ?13.69 crore.

The Court directed that once the fixed deposits were attached, the attachment on the operational bank account would automatically stand lifted.

The tax authorities were directed to complete the adjudication proceedings by 30 May 2026, and the petitioner undertook to file replies promptly to any further notices.

Link:CA. Praveen Sharma on Linkedin

Regards
CAPS

The Court clarified that the attachment of fixed deposits would remain subject to statutory provisions and the outcome of final adjudication, while keeping all rights and remedies of both parties open.