IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH WEDNESDAY, THE 6TH AUGUST 2008 / 15TH SRAVANA 1930 WP(C).No. 23718 of 2008(W) -------------------------- PETITIONER: ------------ S.K.INTERNATIONAL, S.K.HOUSE, 94-4, AVVAL BAUGH DSP ROAD, DADAR(E), MUMBAI-400 014 REPRESENTED BY ITS AUTHORISED SIGNATORY SRI.B.VINESH BY ADV. SRI.S.ANIL KUMAR (TRIVANDRUM) RESPONDENTS: ------------- 1. SALES TAX INSPECTOR, COMMERCIAL TAX CHECK POST AMARAVILA, THIRUVANANTHAPURAM DISTRICT 2. M/S.SITA-TRIVANDRUM, 2ND FLOOR, THOMPIL BUILDING SASTHAMANGALAM, THIRUVANANTHAPURAM 3. UNION BANK OF INDIA, BHAT BAZAR BRANCH ANANTH DEEP CHAMBERS, 273-277, NARSI NATHA STREET, MUMBAI-400 009. BY GOVERNMENT PLEADER ADV.SRI.C.K.GOVINDAN ADV.SRI.A.S.P.KURUP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/08/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M. JOSEPH, J. ```````````````````````````````````````````````````` W.P.(C) No. 23718 OF 2008 W ```````````````````````````````````````````````````` Dated this the 6th day of August, 2008 J U D G M E N T Ext.P2 is a notice issued under section 47(2) of the KVAT Act, 2003 detaining goods noting that the consignee's non liability to pay tax under KVAT Act, 2003 is not proved from the accompanying documents. Petitioner has produced Ext.P3 bank guarantee given by the Bhat Bazar Branch, Mumbai of the Union Bank of India. The petitioner has also produced the confirmation of the same by the Assistant Branch Manager, Ernakulam Branch, Union Bank of India. 2. I heard learned counsel for the petitioner, learned counsel for the 3rd respondent(Union Bank of India, Bhat Bazar Branch, Mumbai) and learned Government Pleader. Learned Government Pleader would point out that Rule 98 of the KVAT Rules requires bank guarantee given by a Bank within the State. Ext.P3 is seen furnished by the Bhat Bazar Branch, Mumbai of the Union Bank of India. A perusal of WPC.23718/08 : 2 : Rule 98 would show that it refers to cheques and drafts. I also find that the local branch at Ernakulam has also confirmed the bank guarantee. Learned counsel for the 3rd respondent also confirms Ext.P3. It is pointed out that the bank guarantee will last till 27.7.2009. I feel that the interests of the State are adequately protected. There will be a direction to release the goods covered by Ext.P2 upon production of a copy of this judgment and accepting Ext.P3. The adjudicatory process will be completed at the earliest. Writ petition is disposed of as above. (K.M.JOSEPH, JUDGE) aks