Attached property protected from auction pending appeal, while fraudulent transfer issues were left for appellate determination.

Where recovery had already been stayed by the first appellate authority and the first appeal remained pending on merits, coercive auction of the attached property was not permitted pending final adjudication. The question whether the transfer amounted to a fraudulent transfer under Section 47 of the VAT Act was reserved for determination in the appellate proceedings, and the alleged relinquishment of share in the property was not examined at that stage. Interim protection was therefore continued against sale of the property, while the appellate authority remained free to decide the appeal on merits.

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Issues: Whether the attached property should be permitted to be auctioned pending the pendency of the first appeal and the stay of recovery, and whether the alleged relinquishment of share in the property could be examined at this stage.

Analysis: The recovery for the assessment years had already been stayed by the first appellate authority, and the first appeal was stated to be pending on merits. The question whether the transfer was a fraudulent transfer within the meaning of Section 47 of the VAT Act was left to be considered in the appellate proceedings. In the meantime, protection was granted against coercive sale of the attached property.

Conclusion: The property was protected from auction pending final adjudication of the petition, while the appellate authority was left free to decide the appeal on merits.

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