Point of Law: The Scheme of the Act provides that on passing of an assessment order under Section 143(3) of the Act, any sum is payable as tax, penalty or fine, then the Revenue would issues a notice of demand under Section 156 of the Act. Section 220 of the Act provides that within a period of 30 days from the date of the service of the demand notice under Section 156 of the Act, the assessee concerned has to make necessary payment to the person and place mentioned in the Notice of demand. In case, the assessee fails to make the payment in terms of the notice of demand, he would be considered to be an assessee in default, enabling the Revenue to adopt coercive measures for recovery of the amount due. However, Section 220(6) of the Act provides that where an assessee has filed an appeal against the assessment order to the Commissioner of Income Tax (Appeals) then, an assessee is entitled to file an application to the Assessing Officer to treat the assessee as not being an assessee in default, consequent to the notice under Section 156 of the Act, till such time as its appeal filed before the Commissioner of Income Tax (Appeals) is disposed of. This right to file an application under Section 220(6) of the Act is a statutory right available to an assessee, if he chooses to so exercise

ORDER :

1. By this writ application under Article 226 of the Constitution of India, the writ applicant has prayed for the following reliefs:

“(A) quash and set aside the impugned assessment order dated 24.03.2020 passed by the adjudicating authority (copy annexed herewith and marked hereto as Annexure-A).

(B) pending admission, hearing and final disposal of this petition, stay the implementation and operation of the impugned assessment order dated 24.03.2020 passed by the adjudicating authority (copy annexed herewith and marked hereto as Annexure-A).

(C) pending admission, hearing and final disposal of this petition, direct the Respondents herein not to take any coercive steps towards recovery of demand raised pursuant to passing of the impugned assessment order darted 24.03.2020 (copy annexed herewith and marked as Annexure-C).

(D) pending admission, hearing and final disposal of this petition, direct the Respondents not to lift the bank attachment imposed on Current Account No. 053211001532 held with Dena Bank (now merged with Bank of Baroda) and permit the Petitioner to use the said bank account.

(E) any other and further relief deemed just and proper be granted in the interest of justice.

(F) to provide for the cost of this petition.”

2. On 11.01.2021, this Court passed the following order:

“1. We have heard Mr. Tushar Hemani, the learned Sr. Counsel assisted by Ms. Vaibhavi K. Parikh, the learned counsel for the writ applicant and Mr. Trupesh Kathiriya, the learned AGP for the State Respondents.

2. The short point falling for our consideration is, whether the Assessing Authority can issue a notice of demand and pass an order under Section 44 of the Gujarat Value Added Tax Act, 2003 (for short “the VAT Act”) attaching the bank account of the assessee in a case in which the assessee has filed an appeal together with a stay application against an order of assessment?

3. In the case on hand, somewhat similar has occurred. It appears that against the order of assessment passed by the Assessing Authority, the writ applicant has filed an appeal before the First Appellate Authority.

4. Mr. Tushar Hemani, the learned counsel appearing for the writ applicant submits that the stay application has also been filed way back in the July, 2020. However, according to Mr. Hemani, no orders have been passed on the stay application. In the meantime, the order came to be passed on 05.10.2020 attaching the current bank account of the writ applicant maintained with the Bank of Baroda, under Section 44 of the VAT Act. Prima facie, it appears that the issue raised has been answered by the Coordinate Bench of this Court in the case of Automark Industries (I) Ltd. vs. State of Gujarat, (2015) 64 Taxmann.com 104 (Gujarat).

5. We could have disposed of this writ application today itself having regard to the settled position of law, however, Mr. Kathiriya, the learned AGP makes a request that he may be granted some time to seek appropriate instructions in the matter.

6. Let Notice for final disposal be issued to the respondents, returnable on 13.01.2021. Having regard to the settled position of law, the respondents would be well advised if they deem fit to revoke the attachment in the meantime. On the returnable date, notify the matter on top of the Board. It is clarified that no amount shall be appropriated from the current bank account of the writ applicant to the State Treasury.”

3. We have heard Mr. Tushar Hemani, the learned senior counsel assisted by Ms. Vaibhavi Parikh, the learned counsel appearing for the writ applicant and Mr. Trupesh Kathiriya, the learned AGP appearing for the State-Respondents.

4. The order passed by this Court dated 11.01.2021, referred to above, is self-explanatory. Mr. Kathiriya, the learned AGP, with his usual fairness, would submit that he has gone through the entire matter and the issue raised in this writ application is no longer res integra in view of the decision rendered by a Coordinate Bench of this Court in the case of Automa