Provisional attachment of bank accounts upheld where revenue protection, tax dues, and material non-disclosure justified the exercise of power.

Section 45 of the Gujarat Value Added Tax Act, 2003 permits provisional attachment during pending assessment or reassessment to protect revenue. The Court found prima facie material indicating substantial tax dues and noted that the petitioner had already obtained large bank credit facilities against mortgaged properties. It also recorded that the earlier request to lift attachment had been obtained through material non-disclosure, as the heavy borrowings and recovery proceedings were not revealed. In these circumstances, the Court saw no reason to interfere with the Commissioner's exercise of power and upheld the provisional attachment of the bank accounts.

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Issues: Whether the provisional attachment of the petitioner's bank accounts under Section 45 of the Gujarat Value Added Tax Act, 2003 was justified.

Analysis: Section 45 empowers provisional attachment during pendency of assessment or reassessment where attachment is for protecting the interest of government revenue. The authorities had prima facie material indicating substantial tax dues, and the petitioner had already availed large credit facilities from banks against mortgaged properties. The petitioner's earlier plea for lifting attachment was obtained on the basis of a material non-disclosure, since the existence of heavy bank borrowings and recovery proceedings was not revealed to the Court. In these circumstances, the Court found no ground to interfere with the Commissioner's exercise of power.

Conclusion: The provisional attachment of the bank accounts was upheld and the petition was rejected.

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