Bad_News Gujarat High Court has upheld the renewal of provisional attachments against the Assesee.: Dept’s Action Against Fraudulent GST Claims Stands. This was in the case of Rs.360 crore bogus GST scam. Nandan Mobile vs Assistant Commissioner of State Tax of State (II), Enforcement, Division (V) (R/SPECIAL CIVIL APPLICATION NO. 16339 of 2024; dated 29-Jan-2025) ✅Facts & Timeline ➜The Assesee, a sole proprietorship dealing in mobile phones (HSN 8517 & 8542), registered under the GST Act, had consistently filed its returns. ➜The Department initiated a search at the Assesee’s premises following allegations of bogus billing and circular trading, subsequently ordering provisional attachment of the bank accounts and certain immovable properties. ➜The Assesee raised objections (e.g. via Rule 159) and later sought release of the attachments after one year (28/10/2024). Renewal orders were passed on 13/11/2024 and 18/12/2024. 📅 ✅Issue ➜Whether the Department may lawfully renew the provisional attachment orders on the Assesee’s bank accounts beyond the statutory one‐year period under Section 83(2) of the GST Act. ✅Assesee’s Argument The Assesee contended that the original provisional attachment should have ceased on 17/10/2024, making any renewal void. ✅Department’s Argument The Department maintained that, given the extensive investigation uncovering a complex fraudulent scheme (with a purported loss of revenue of approximately Rs.360 crore), and the evidence reflected in the satisfaction notes, the renewal of attachment orders was necessary to safeguard government revenue. They emphasized that the continued fraudulent activity justified their actions. 🔒 ✅Court Judgment The Gujarat High Court held that while the original provisional attachment naturally ceased after one year, the renewal orders (dated 13/11/2024 and 18/12/2024) were valid. The Court concluded that, in view of the substantial evidence of fraud and the need to protect government revenue, the Department’s actions were within its jurisdiction. ⚖️