Bank account attachment requires hearing and reasons; a same-day non-speaking order cannot survive as final attachment.

A bank account attachment under Section 45 of the Gujarat Value Added Tax Act, 2003 must be preceded by a meaningful opportunity of hearing and supported by reasons. The High Court held that a same-day notice and attachment order, passed without awaiting a reply or hearing the dealer, offended fair procedure and could not stand as a final attachment. It also held that the order was invalid as non-speaking because it did not record the basis for the authority's satisfaction or explain why such drastic action was warranted. The attachment was therefore quashed as a final order, but allowed to continue only provisionally until a fresh speaking order was passed after hearing the petitioner.

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Issues: (i) Whether the bank account attachment order passed under Section 45 of the Gujarat Value Added Tax Act, 2003 could be sustained when the notice and order were issued on the same day without affording an effective opportunity of hearing; (ii) Whether the impugned order, being non-speaking and unreasoned, could stand in law.

Issue (i): Whether the bank account attachment order passed under Section 45 of the Gujarat Value Added Tax Act, 2003 could be sustained when the notice and order were issued on the same day without affording an effective opportunity of hearing.

Analysis: Even where immediate protective action may be justified to safeguard revenue, the dealer cannot be denied a meaningful opportunity before a final attachment order is made. A same-day notice and order, without waiting for a reply or hearing the dealer, offends the requirements of fair procedure. The facts indicated that the authority acted immediately after issuing notice, but that did not dispense with the requirement of hearing before finalizing attachment.

Conclusion: The attachment order could not be sustained as a final order and was liable to be set aside for want of a reasonable opportunity of hearing.

Issue (ii): Whether the impugned order, being non-speaking and unreasoned, could stand in law.

Analysis: An order under Section 45 affecting a bank account must disclose the basis for satisfaction and the reasons for invoking the power. The impugned order did not reflect why such drastic action was warranted and did not record the authority's satisfaction in a reasoned manner. In the absence of stated reasons, the order failed the requirement of a speaking order.

Conclusion: The impugned order was invalid as a non-speaking and unreasoned order.

Final Conclusion: The petition was allowed to the extent that the impugned attachment order was quashed as a final order, but it was directed to operate only as a provisional attachment until the competent authority passed a fresh speaking order after hearing the petitioner.

Ratio Decidendi: A bank account attachment under Section 45 of the Gujarat Value Added Tax Act, 2003 must be preceded by a meaningful opportunity of hearing and supported by reasons; otherwise, the order cannot survive as a final attachment and may, at best, operate provisionally pending fresh adjudication.

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