Pre-assessment attachment relief under Gujarat VAT law: bank accounts released, stock condition removed, and perishable goods allowed to be sold.

In proceedings under section 45 of the Gujarat Value Added Tax Act, 2003, the High Court considered whether ad-interim protection was justified during preliminary investigation when no assessed liability had been determined. It noted that the attachment orders reflected only an estimated liability against the petitioners, while the larger joint-and-several figure mentioned in the scam context had no basis in those orders. As attachment of movable and immovable assets already secured the estimated liability, continued bank account attachment and the stock-maintenance condition were treated as unnecessary. The Court also recognised hardship caused by seizure of perishable stock and business records, and allowed disposal of perishable goods with supply of copies of impounded material.

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Issues: Whether, in proceedings under section 45 of the Gujarat Value Added Tax Act, 2003, the petitioners were entitled to ad-interim relief by lifting the bank account attachment, deleting the stock-maintenance condition, permitting sale of perishable goods, and supplying copies of impounded material.

Analysis: The petition was at the stage of preliminary investigation and no assessed liability had yet been determined. The estimated liability reflected in the attachment orders was limited to the petitioners, whereas the larger figure referred to a joint and several liability of all concerned in the alleged scam and was not supported by any basis in the orders. On the facts, attachment of the movable and immovable properties already appeared sufficient to secure the estimated liability. The seizure of perishable stock and impounded business material was also causing hardship to business operations, and copies of the impounded material were stated to be available for supply.

Conclusion: Ad-interim relief was granted in favour of the petitioners by directing release of the bank accounts, deletion of the stock-maintenance condition to the stated extent, permission to dispose of perishable goods, and supply of copies of the impounded items.

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