IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 3RD FEBRUARY 2011 / 14TH MAGHA 1932 WP(C).No. 820 of 2011(B) ------------------------------------- PETITIONER(S): ------------------------ USHA INTERNATIONAL LTD., IX/418/A1, LOGISTIC PARK, THENGODE P.O., EDACHIRA, KAKKANAD - 682 030, REP. BY ITS SR.MANAGER (SALE/ADMN), G.SANKAR. BY ADVS. SRI.ANIL D. NAIR, SRI.PREM NAVAZ, SMT. NIVEDITA A.KAMATH. RESPONDENT(S): ---------------------------- 1. THE INTELLIGENCE OFFICER, SQUAD I, COMMERCIAL TAXES, ALAPPUZHA - 680 001. 2. THE INTELLIGENCE OFFICER, SQUAD IV, COMMERCIAL TAXES, ERNAKULAM - 682 016. 3. STATE OF KERALA, REPRESENTED BY ITS SECRETARY (TAXES), SECRETARIAT, THIRUVANANTHAPURAM - 695 001. R1 TO R3 BY GOVERNMENT PLEADER SRI. V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.820 of 2011 ------------------------------------------- Dated this the 3rd day of February, 2011 J U D G M E N T ---------------------- Pursuant to Ext.P1 and P2 notices, proceedings under Section 47(2) of the Kerala Value Added Tax Act, 2003 (KVAT Act) was initiated against the petitioner, detaining two distinct transports effected. For release of the detention, the petitioner had provided Bank Guarantee in lieu of the security deposit demanded, as evidenced from Ext.P3 and P4. Subsequently, the enquiry contemplated under Section 47(5) was finalised and the 1st respondent had imposed penalty on the petitioner under Section 47(6) of the KVAT Act. Consequently steps were initiated for realising the Bank Guarantee, even without serving copies of the orders imposing penalty, on the petitioner. Therefore the writ petition is filed seeking direction to restrain realisation of the Bank Guarantee till copies of the penalty orders are issued to the petitioner and till he is facilitated to file appeal against such orders. 2. During pendency of the writ petition it is stated that the petitioner was issued with copies of the orders imposing W.P.(C).820/11 -2- penalty, which is produced as Ext.P10 and P11. It is revealed that the petitioner had already filed appeals against the penalty orders, before the Deputy Commissioner (Appeals), Ernakulam. Under the above circumstances the petitioner now seeks direction to dispose of the appeals and till then to restrain realisation of the Bank Guarantee. 3. It is noticed that, the amount of penalty imposed stands secured by way of Bank Guarantee furnished as evidenced from Ext.P3 and P4. Under such circumstances I am of the opinion that interest of justice will be served if the appellate authority is directed to consider and dispose of the appeals on an early basis, and till then realisation of the Bank Guarantee is restrained. 4. In the result, the writ petition is disposed of directing the Deputy Commissioner (Appeals), Ernakulam, before whom the petitioner had filed appeals as evidenced from Ext.P10 and P11, to consider and dispose of the same after affording an opportunity of hearing to the petitioner, at the earliest possible, at any rate within two months from the date of receipt of a copy of this judgment. 5. Till such time the appeals are disposed of by the W.P.(C).820/11 -3- appellate authority as directed above, realisation of amounts covered under Ext.P3 and P4 Bank Guarantee shall be kept in abeyance, provided the petitioner keeps the same renewed, if necessary. C.K.ABDUL REHIM, JUDGE. okb