Provisional bank account attachment stayed in VAT-GST dispute, with revenue safeguarded by a bank guarantee.

Interim protection was granted against a provisional attachment of a bank account while the writ petition concerning the tax treatment of Extra Neutral Alcohol and Rectified Spirit remained pending. The court balanced the competing interests by staying the attachment, but required the petitioner to furnish a nationalised bank guarantee for part of the differential amount between GST already paid and the VAT quantified, so that revenue interests were protected during the dispute.

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Issues: Whether the notice provisionally attaching the petitioner's bank account ought to be stayed during the pendency of the writ petition.

Analysis: The challenge was to the provisional attachment issued under Section 35 of the Maharashtra Value Added Tax Act, 2002 in the context of the dispute whether Extra Neutral Alcohol and Rectified Spirit were exigible to VAT or GST. Pending further consideration of the controversy and balancing the interests of both sides, interim protection was found appropriate, but subject to safeguarding the revenue by a bank guarantee for part of the differential amount between GST already paid and VAT quantified.

Conclusion: The impugned notice provisionally attaching the bank account was stayed, subject to furnishing a nationalised bank guarantee to the extent directed.

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