Validity of provisional orders of attachment—In the instant case, petitions are filed for challenging provisional orders of attachment passed by the respondent authorities attaching the petitioner's factory premises, stock and bank accounts.

Held that—At the prima facie stage, the department contends strongly that the petitioner has indulged into revenue defalcation. Possible tax and penalty liabilities are substantial. At the same time, it is not disputed that the petitioner is also involved in legitimate business activities. By freezing the petitioner's bank accounts and attaching the properties, the petitioner is temporarily rendered penalized. The petitioner cannot operate the business, cannot move the stock and cannot make payments.

Provisional attachments suspended subject to fulfillment of certain conditions.
 Petition disposed off.[M/S. KHUSHIYA INDUSTRIES PVT. LTD. VERSUS STATE OF GUJARAT] [GUJARAT HIGH COURT][2018] 5 TAXLOK.COM 63 (Guj)