UPGST Act | Lien Cannot Be Created On Assessee's Bank Account After Over A Year Has Passed From Payment Of Tax: Allahabad High Court

Section 62(2) of the UPGST Act provides that where a registered person submits a valid return within 60 days of the service of the order under Section 62(1), the said assessment order would be considered to have been withdrawn; only the liability for payment of interest would persist.

The petitioner had delayed filing the returns and payment of taxes. Thereafter, notices were issued to them under Section 62(1) of the Act. Upon service of the notices, the petitioner filed the returns and the payment of in most cases within 60 days.

The proceedings took place in the year 2023-24. However, liens were created on the bank account of the petitioner by orders dated 14.07.2025, 15.09.2025, and 19.09.2025.

The Court held that given that the lien was created more than a year after the petitioner had paid their taxes, the action of the authorities was unsustainable in law.

“It is clear that these liens have been created after more than a year of the petitioner having paid his taxes. Furthermore, the deeming fiction under Section 62(2) of the Uttar Pradesh Goods and Services Tax Act, 2017 would apply, and any further demands should have been withdrawn by the authorities,” held the division bench comprising Justice Shekhar B. Saraf and Justice Prashant Kumar.

Accordingly, the writ petition was allowed.

Case Title: M/s Smm Infratech Private Limited v. State of U.P. [WRIT TAX No. - 1121 of 2