The Delhi High Court has expressed concern over repeated provisional attachments of bank accounts by the Directorate General of GST Intelligence (DGGI), granting partial relief in a case where accounts had been frozen despite expiry of the earlier attachment period.
The bench of Justice Prathiba M. Singh and Justice Shail Jain was hearing a writ petition challenging the re-attachment of two bank accounts—one with ICICI Bank and another with Yes Bank—under Section 83 of the CGST Act, 2017. The petitioner argued that such re-attachments were illegal, citing the recent Supreme Court ruling in Keshari Nandan Mobile vs Assistant Commissioner of State Tax, which held that fresh attachments after expiry of the first order were not permissible.
The GST department, however, defended its action by pointing to fresh circumstances, including allegations of fraudulent Input Tax Credit (ITC) claims worth more than ₹40 crore. It also noted that the earlier attachment order had covered only one bank account, while the new one extended to both.
The Court observed that the investigation had been ongoing since May 2024, yet no Show Cause Notice (SCN) had been issued under Section 74 of the CGST Act. It also recorded that the company had deposited ₹1.2 crore under protest.
Taking a balanced view, the Court ruled that the interests of the revenue would be safeguarded if ₹2 crore from the ICICI Bank account is maintained in a Fixed Deposit, while allowing the business to operate its other funds.
The matter has been listed for further hearing after the filing of replies, with the next dates set for September 23, 2025before the Joint Registrar and November 21, 2025 before the Court.
Case Details
Case Title: M/S Osiya Metal Industries Versus DGGI
Case No.: W.P.(C) 12521/2025 & CM APPL. 51100/2025
Date: 20.08.2025
Counsel For Petitioner: R. P. Singh
Counsel For Respondent: Atul Tripathi
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