Provisional attachment under VAT law cannot continue beyond one year without a fresh order assessing current necessity.

A provisional attachment under section 45 of the VAT Act operates only during pending assessment or reassessment proceedings and only to protect government revenue. The provision fixes a strict one-year limit, after which the attachment ceases to have effect by operation of law. Continued restraint cannot arise automatically from the earlier order; if further attachment is considered necessary, the authority must pass a fresh order on a current assessment of necessity. The impugned attachments were therefore ineffective after expiry of one year, and the challenge to their continuing operation succeeded.

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Issues: Whether provisional attachment made under section 45 of the VAT Act can continue beyond one year without a fresh order, and whether the impugned attachment orders had ceased to have effect by lapse of time.

Analysis: Section 45 empowers provisional attachment only during pendency of assessment or reassessment proceedings and only where necessary to protect the interests of Government revenue. The provision also expressly limits the duration of such attachment by providing that every provisional attachment shall cease to have effect after one year from the date of the order. The statutory scheme does not permit an attachment to continue indefinitely by mere passage of time. If the authority considers continued attachment necessary, a fresh order must be passed after examining the current position, so that the matter is reconsidered and the earlier order does not operate mechanically beyond the permitted period.

Conclusion: The provisional attachment orders ceased to have effect on completion of one year and could not survive thereafter without a fresh order. The issue is answered in favour of the petitioner.

Final Conclusion: The challenge to the continuing effect of the attachment succeeded, and the petition was disposed of by declaring the impugned attachments ineffective by operation of law.

Ratio Decidendi: A provisional attachment under section 45 cannot survive beyond the statutory period of one year, and any further continuation requires a fresh order passed on a current assessment of necessity.

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