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2022 (5) TMI 385 - HC - VAT and Sales TaxAttachment of Bank Accounts - whether the State Tax Officer could have proceeded to instruct the I.D.B.I. Bank not to permit the writ-applicant to operate its current bank account on the ground that the writ-applicant – Company has incurred a liability under the Act, 2003? - HELD THAT:- While the Second Appeal is pending before the Tribunal, and the Tribunal has yet to look into even the interim application filed by the writ-applicant in the Second Appeal seeking appropriate relief, the State Tax Officer could not have proceeded to direct the bank not to allow the writ-applicant to operate its current account. In the case on hand, indisputably there has been no notice of demand as contemplated under Section-42 of the Act. It is within the knowledge of the authority that the writ-applicant is before the Tribunal in a Second Appeal. The Tribunal for the purpose of entertaining the second appeal may put the writ-applicant to some conditions like pre-deposit etc. The Second Appeal is yet to be heard on merits - pending the Second Appeal before the Tribunal, the impugned action on the part of the State Tax Officer is not sustainable in law. It could be said that the impugned action is essentially in exercise of powers under Section-45 of the Act. Section-45 only talks about provisional attachment. Provisional attachment is permissible only during the pendency of the proceedings of assessment or reassessment. In the case on hand, the writ-applicant has traveled much beyond the proceedings of assessment. The impugned order dated 04.01.2022 at Annexure-A to this writ-application purported to have been passed under Section-44 of the Act 2003 is hereby quashed and set aside - Applicartion allowed.
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