DRC-23 — Order for Release of Provisionally Attached Property

DRC-23 is issued when the Commissioner decides to lift or withdraw the provisional attachment imposed earlier through DRC-22. This form formally releases the attached property—such as bank accounts, land, vehicles, or stock—after determining that attachment is no longer required to protect revenue. It restores the taxpayer’s ability to use, transfer, or operate the property freely.

When DRC-23 Is Issued

This form is used only after a review of the provisional attachment concludes that the restriction is unnecessary or excessive.

• Issued when the taxpayer successfully objects to the attachment.
• Used when proceedings under Section 83 have been completed.
• Applied when investigation shows that revenue is not at risk.
• Triggered when the department accepts that continued attachment is unfair or unwarranted.

Legal Framework

DRC-23 is part of the provisional attachment mechanism and is the legally required document for cancelling or modifying such attachment.

• Governed by Rule 159(5) of the CGST Rules.
• Linked to powers exercised under Section 83 of the CGST Act.
• Issued by the Commissioner or authorised senior officer.
• Officially ends the attachment, allowing full restoration of rights to the taxpayer.

Details Included in DRC-23

The form clearly states the withdrawal of attachment and identifies the property being released.

• Contains GSTIN, taxpayer name, and reference to the DRC-22 order.
• Specifies the property or account being released from attachment.
• Mentions the reasons for withdrawal or modification of attachment.
• Directs banks or authorities to remove restrictions immediately.
• Confirms that the taxpayer is free to deal with the property from that point forward.

Practical Importance

DRC-23 is important because it formally closes the provisional attachment and ensures that the taxpayer can resume using attached funds or property.

• Restores liquidity when bank accounts were earlier frozen.
• Enables sale, mortgage, or business use of property released.
• Prevents hardship caused by prolonged or unnecessary attachment.
• Provides documentary proof of release for future audits or legal use.

Action After Issuance

The taxpayer should track and ensure that banks, sub-registrars, and authorities implement the release without delay. If any restriction continues due to procedural delay, DRC-23 may be used as the official authority to remove such blocks.