Statutory first charge on dealer property under VAT law upheld; revenue record entry was not treated as an attachment.

Section 48 of the Gujarat Value Added Tax Act, 2003 creates a first charge on a dealer's property for tax, interest or penalty by operation of law. The Court treated the revenue record entry as evidence of that statutory charge, not as an attachment, and noted that attachment only restricts alienation without creating title or lien. Sections 44, 45 and 46 were held not to displace that position on the facts presented. As the property remained validly subject to the statutory encumbrance, no release of the charge was warranted and the challenge failed.

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Issues: Whether, after an assessment under the Gujarat Value Added Tax Act, 2003 and during pendency of the first appeal with recovery stayed on condition of pre-deposit, the revenue was bound to release the charge/encumbrance entry created over the assessee's immovable property.

Analysis: Section 48 of the Gujarat Value Added Tax Act, 2003 operates with a non-obstante clause and makes tax, interest, or penalty payable by a dealer a first charge on the dealer's property by operation of law. The Court distinguished a charge from attachment, noting that attachment merely restrains alienation and does not create a lien or title, whereas a statutory charge is only a security for payment of money. The reference to the revenue record was treated as an entry evidencing the statutory charge and not as an attachment. Sections 44, 45 and 46 were held not to govern the facts in the manner suggested by the petitioner.

Conclusion: The property was validly subject to a statutory first charge, no case for release of the encumbrance was made out, and the challenge failed.

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