Provisional attachment under VAT law lifted with safeguards after the court balanced business continuity and revenue protection.

Provisional attachment of a dealer's bank account and stock under the Gujarat Value Added Tax Act was treated as a drastic measure requiring restraint while assessment proceedings remained pending. The court noted that the bank balance was insignificant, the attached stock was substantial, no discrepancy was found between physical stock and the stock register during the spot visit, and the disputed purchases predated cancellation of some sellers' registrations. Balancing business continuity against revenue protection, the attachment was lifted subject to safeguards, including maintenance of minimum stock of the prescribed value and filing of an undertaking within the stipulated time.

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Issues: Whether the provisional attachment of the petitioner's bank account and stock under section 45 of the Gujarat Value Added Tax Act, 2006 was justified during the pendency of assessment, and whether it could be lifted subject to conditions.

Analysis: The attachment power under section 45 was treated as a drastic measure to be used with restraint, particularly when assessments were still pending. The available material showed that the bank balance was insignificant, the stock under attachment was substantial, no discrepancy in physical stock and stock register was pointed out at the time of the spot visit, and the disputed purchases were said to have been made before cancellation of some sellers' registrations. In these circumstances, the Court considered that a practical arrangement could be made to permit the petitioner to continue business while protecting the revenue's interest pending assessment.

Conclusion: The provisional attachment was ordered to be lifted, subject to the petitioner maintaining minimum stock of the prescribed value and filing an undertaking within the stipulated time.

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