Authority: Gauhati High Court (Kohima Bench)

Order Date: 22 June 2026

Case Overview

  • Petitioner: Shri Petro Chemical Mercantile Pvt. Ltd., principal place of business at Ri Bhoi, Meghalaya.
  • Respondents: Union of India and five others – Directorate General of GST Intelligence (DGGI), Additional Director General DGGI (Siliguri), Senior Intelligence Officer (DGGI, Siliguri), Punjab & Sind Bank (Dimapur branch), Punjab & Sind Bank (New Delhi branch).
  • The petitioner challenged a provisional attachment of its bank account issued under Section 83 of the Central Goods and Services Tax Act, 2017. The attachment order was dated 27‑02‑2026 and digitally signed on 26‑02‑2026.
  • The petitioner alleged that the attachment order was issued mechanically, without the mandatory formation of an opinion by the competent authority as required by Section 83 and clarified by the Supreme Court in Radha Krishan Industries vs. State of Himachal Pradesh (AIR 2021 SC 2114).
  • The learned Senior Counsel, Dr. A. Saraf, highlighted paragraphs 48‑50 and 72 of the Supreme Court judgment, emphasizing that the law is draconian and an opinion must precede any attachment to protect revenue interests.
  • Respondents 2, 3, and 4 (DGGI officials) did not appear before the Court on this occasion, and the bank counsel stated he had no instructions from the bank.
  • The Court examined the attachment order and found no evidence of an opinion being formed; the order merely stated that the attachment was to protect revenue interests, contrary to the Supreme Court’s five‑point requirement (opinion by Commissioner, necessity for revenue protection, written order, compliance with procedural rules, and observation of the Rules).

Final Outcome

  • The Court held the attachment order dated 27‑02‑2026 to be unsustainable in law and set it aside.
  • Punjab & Sind Bank (both Dimapur and New Delhi branches) were directed to de‑freeze the petitioner’s bank account immediately.
  • The writ petition was disposed of as allowed, granting the relief sought by the petitioner.

Topics: GST Enforcement, Banking Regulation