Provisional attachment for revenue protection upheld where bogus transactions were prima facie shown and no credible security was offered.

Provisional attachment under section 45 of the Gujarat Value Added Tax Act, 2003 is an extraordinary revenue-protection measure that may be upheld where the authority has prima facie material showing risk to recovery. Here, the attachment was supported by alleged bogus billing, purchases from cancelled dealers, lack of credible proof of movement of goods or banking payments, and refusal to furnish bank guarantee or similar security. On those facts, the court declined interference and the challenge to attachment of the bank account, stock and immovable property failed.

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Issues: Whether the provisional attachment of the petitioner's bank account, stock and immovable property under section 45 of the Gujarat Value Added Tax Act, 2003 was liable to be interfered with.

Analysis: Section 45 confers an extraordinary power of provisional attachment during pendency of assessment or reassessment proceedings where the authority is of the opinion that such attachment is necessary to protect revenue. The power may cause hardship, so the Court must examine the factual basis and may modify the attachment where warranted. In the present case, there was prima facie material indicating bogus billing transactions, purchases from dealers whose registrations had been cancelled, and failure by the petitioner to place any worthwhile material showing actual movement of goods or payments through banking channels. The estimated tax exposure was substantial, and the petitioner declined to furnish bank guarantee or any comparable security.

Conclusion: The provisional attachment was not interfered with and the challenge failed.

Final Conclusion: No relief was granted against the attachment order, and the writ petition was dismissed.

Ratio Decidendi: Provisional attachment under section 45 of the Gujarat Value Added Tax Act, 2003 will not be interfered with where there is prima facie material of revenue risk and the dealer fails to produce credible material to rebut the alleged non-genuine transactions or offer adequate security.

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