Conditional release of attached property is permitted when alternate security and part-payment protect the revenue pending appeal.

An attached property may be released conditionally pending appellate proceedings where the tax demand has not attained finality, adequate alternate security is offered by a co-owner, and a part-payment is made toward the assessed liability. The arrangement can also permit transfer of the property subject to the State's charge under the Kerala Value Added Tax Act, so that a sale may proceed while revenue interests remain protected. The practical effect is a balanced interim measure: the assessee may liquidate the asset, but the attachment is replaced by security and payment conditions until the Tribunal decides the appeal.

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Issues: Whether the attachment over the assessee's property could be lifted on furnishing alternate security from the co-owner and making a part-payment towards the assessed liability pending disposal of the appeals before the Tribunal.

Analysis: The liability was not yet conclusive, the alternate property offered as security was valued substantially higher than the disputed demand, and the proposed purchaser was willing to buy the property subject to the State's charge under Section 38 of the Kerala Value Added Tax Act. In these circumstances, the Court found it to permit substitution of security, require a part-payment, and direct release of the attached property to facilitate completion of the sale while safeguarding the revenue.

Conclusion: The attachment was directed to be lifted upon compliance with the conditions of furnishing alternate security and paying Rs. 5,00,000, and the transfer was permitted subject to the State's charge.

Final Conclusion: The assessee obtained conditional relief enabling sale of the attached property against alternate security, while the revenue's interest was protected until the appeal was decided.

Ratio Decidendi: Where the tax demand is yet to attain finality and adequate alternate security is offered, attachment may be lifted conditionally to balance recovery interests with the taxpayer's ability to liquidate assets.

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