Provisional attachment for revenue protection: interim relief granted over bank accounts and stock under VAT law

Pending the writ petition, the Gujarat HC considered whether provisional attachment of bank accounts and stock under section 45 of the Gujarat Value Added Tax Act, 2003 could be continued to secure a possible future penalty liability. The Court held that the scope of attachment for protection of Government revenue required further consideration, and granted ad-interim relief in the meantime. It stayed the impugned order and directed release of the attached bank accounts and stock.

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Issues: Whether, pending consideration of the writ petition, the provisional attachment of the petitioners' bank accounts and stock under section 45 of the Gujarat Value Added Tax Act, 2003 warranted ad-interim protection.

Analysis: The attachment was challenged on the basis that section 45 empowers provisional attachment for protecting the interest of the Government revenue, and the question arose whether that expression would extend to a possible future penalty liability. The Court found that the matter required consideration and, in the meanwhile, granted interim protection against continued attachment.

Conclusion: Ad-interim relief was granted by staying the impugned order and directing release of the attached bank accounts and stock.

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