Interim protection over tax attachment dispute stayed pending challenge to the State's claimed first charge under VAT law.

Interim protection was granted against implementation of a Tribunal order directing lifting of attachment over State tax authorities' properties to facilitate sale by the liquidator under the insolvency framework. The Court noted the competing claims between the State's asserted first charge under VAT law and the insolvency regime, along with the pending challenge to the statutory charge. Pending notice and final hearing, the operation, implementation and execution of the impugned order were stayed.

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Issues: Interim protection against implementation of the Tribunal's order directing lifting of attachment of the State tax authorities' properties pending the petition.

Analysis: The petition challenged the Tribunal's direction to lift attachment so that the assets could be sold by the liquidator and the sale proceeds distributed under the insolvency framework. The Court noted the competing submissions regarding the State's claim of a first charge under the State VAT law, the effect of the insolvency scheme, and the pending challenge concerning the statutory charge. Pending notice and final hearing, the Court granted interim protection by staying the operation, implementation and execution of the impugned order.

Conclusion: Interim relief was granted and the impugned order was stayed pending hearing of the petition.

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