Provisional attachment of bank accounts must be used sparingly, only when necessary to protect revenue and after considering alternatives.

An overdraft bank account was treated as property for provisional attachment purposes because the term includes money and other interests with exchangeable value, and funds standing to the credit of the account form part of the assessee's property. The court also held that provisional attachment under section 17-B is an extraordinary, last-resort measure, to be used only on relevant material, with prior approval, during pending assessment proceedings, and only where necessary to protect revenue. On the facts, the bank attachment was premature and disproportionate, so it was quashed, while the assessee was required to furnish immovable property security instead.

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Issues: (i) whether an overdraft bank account is 'property' capable of provisional attachment under section 17-B of the Andhra Pradesh General Sales Tax Act, 1957; (ii) whether the impugned provisional attachment of the petitioner's bank account was justified in the facts and circumstances of the case.

Issue (i): whether an overdraft bank account is 'property' capable of provisional attachment under section 17-B of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The expression 'property' in section 17-B was construed broadly. The Court held that the term includes money and other interests having exchangeable value, and that money lying to the credit of a bank account, whether borrowed or owned funds, is part of the assessee's property. The absence of a definition in the Act did not justify a narrow construction.

Conclusion: Yes. A bank account, including an overdraft account to the extent of the assessee's funds therein, is property within the meaning of section 17-B.

Issue (ii): whether the impugned provisional attachment of the petitioner's bank account was justified in the facts and circumstances of the case.

Analysis: Section 17-B was treated as an extraordinary power akin to attachment before judgment, to be exercised only during pending assessment proceedings, with prior approval and on material showing necessity to protect the revenue. The Court emphasised that the power must be used sparingly, reasonably, and as a last resort, and that bank accounts should not be attached where less drastic protection is available. In the present facts, the attachment was found premature and not consistent with fair play and non-arbitrariness, particularly since objections to the show-cause notice were still pending and alternative security could protect the revenue.

Conclusion: No. The provisional attachment of the bank account was not justified and was liable to be quashed, though the petitioner was required to furnish security of immovable property for the stated amount.

Final Conclusion: The writ petition succeeded only to the extent of quashing the bank attachment, while preserving revenue protection by directing the petitioner to furnish immovable property security for the assessed amount.

Ratio Decidendi: Provisional attachment under section 17-B is a drastic protective measure that may be used only on relevant material and as a last resort to safeguard revenue, and bank accounts may be attached only where such action is reasonably necessary and proportionate.

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