In Sunshine Exim v. Directorate General of GST Intelligence, the petitioner approached the Rajasthan High Court seeking de-freezing of its bank account, which remained attached beyond the one-year limit prescribed in Section 83(2) of the CGST Act. The department argued that the investigation was ongoing and that the attachment served as a protective measure. However, the Court found (para 4) that no fresh order or proceeding justified the continued freeze.

Accordingly, the Court directed the bank to allow normal operations on the account. This decision reinforces that provisional attachment is time-bound and cannot be indefinitely extended without specific authority.

Case: Sunshine Exim v. Directorate General of GST Intelligence, decided on 24.10.2024 by Rajasthan High Court