Revenue attachment against bank accounts lifted where immovable property already secured the demand, subject to protective conditions.

When the estimated revenue demand was already secured by attachment of immovable properties of substantially higher value, continued attachment of all petitioners' bank accounts was found unnecessary and excessive under the Gujarat Value Added Tax Act, 2003. The court noted that the bank restraints could paralyse business operations, and therefore quashed the bank account attachments while maintaining the immovable property attachments. The release of the bank accounts was made conditional on the petitioners maintaining a minimum balance and cooperating in the assessment proceedings.

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Issues: Whether the attachment of the petitioners' bank accounts could be sustained when the immovable properties already attached were sufficient to secure the estimated revenue demand under the Gujarat Value Added Tax Act, 2003.

Analysis: The notices and attachment orders reflected an estimated liability of about Rs. 50 lakhs in each matter, while the attached immovable properties were valued at more than Rs. 1.25 crore in aggregate. On that basis, the revenue was found to be adequately secured by the attachment already made over the residential flat and office premises. Continued attachment of all bank accounts was held to be unnecessary and likely to paralyse the petitioners' business. At the same time, release of the bank accounts was made conditional upon maintenance of a minimum balance and cooperation in the assessment proceedings.

Conclusion: The attachment of the bank accounts was quashed, while the attachment over the immovable properties was maintained, subject to the petitioners maintaining the specified minimum bank balance and cooperating in assessment.

Ratio Decidendi: Where the revenue demand is sufficiently secured by attachment of immovable property, further attachment of all bank accounts is unjustified and may be lifted subject to protective conditions.

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