IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 14TH DECEMBER 2010 / 23RD AGRAHAYANA 1932 WP(C).No. 37157 of 2010(T) -------------------------------------- PETITIONER: ------------------- M/S.MAXTHERM TECHNOLOGIES (P) LTD., T.S.KRISHNA NAGAR, ANNA NAGAR WEST EXTN., CHENNAI - 600 050, REPRESENTED BY ITS AUTHORISED SIGNATORY P.A.BALAKRISHNAN. BY ADV. SRI.P.N.DAMODARAN NAMBOODIRI. RESPONDENTS: ------------------------ 1. THE INTELLIGENCE INSPECTOR, COMMERCIAL TAXES, SQUAD V, KASARAGOD - 671 121. 2. THE INTELLIGENCE OFFICER, COMMERCIAL TAXES, SQUAD V, KASARAGOD - 671 121. 3. THE DEPUTY COMMISSIONER (APPEALS), COMMERCIAL TAXES, KOZHIKODE - 673 006. 4. THE UNION BANK OF INDIA, T.S.K.NAGAR, CHENNAI BRANCH - 600 150, REPRESENTED ITS BRANCH MANAGER. R1 TO R3 BY SR. GOVT. PLEADER SRI. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/12/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 37157 of 2010 --------------------------------- Dated this the 14th day of December, 2010 JUDGMENT Through Ext.P4 order issued by the 2nd respondent penalty to the tune of Rs.1,74,960/- was imposed on the petitioner, under the provisions of the Kerala Value Added Tax Act (KVAT Act). It is stated that pursuant to interception of a transport and initiation of proceedings under section 47(2), the petitioner had furnished Bank guarantee for release of the detention. Now, by virtue of Ext.P7 order, the 2nd respondent had directed the Bank guarantee to be converted as penalty. Aggrieved by Ext.P4 order the petitioner had already filed statutory appeal before the 3rd respondent, as evidenced from Ext.P5. Petitioner is aggrieved by the steps now initiated for realising the Bank guarantee without considering pendency of the appeal. Hence, the petitioner is seeking directions to restrain realisation of the Bank guarantee till the disposal of the appeal. 2. Considering the fact that the amount of penalty is fully secured by way of Bank guarantee furnished, I am of the WP(C) .37157/2010 2 view that the 3rd respondent can be directed to dispose of the appeal at the earliest possible and till then the realisation of amounts covered under the Bank guarantee can be restrained. 3. Accordingly, the writ petition is disposed of directing the 3rd respondent to consider and pass orders on Ext.P5 appeal, after affording an opportunity of hearing to the petitioner, as early as possible, at any rate within a period of six weeks from the date of receipt of a copy of this judgment . 4. Till such time orders are passed by the 3rd respondent on Ext.P5 appeal, realisaiton of the amounts covered under the Bank guarantee furnished by the petitioner shall be kept in abeyance, provided the petitioner keeps the Bank guarantee alive if necessary, till the disposal of the appeal. C.K.ABDUL REHIM,JUDGE pmn/ WP(C) .37157/2010 3