IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 3RD APRIL 2009 / 13TH CHAITHRA 1931 WP(C).No. 18518 of 2007(D) ----------------------------------- PETITIONER : --------------- SRI VARIVALAPPIL DAMODHARAN,S/O.MANU, VARIVALAPPIL HOUSE, MUKUTHOLA VILLAGE, PONNANI TALUK,MALAPPURAM DISTRICT. BY ADV. SRI.M.C.GOPI RESPONDENTS : ------------------- 1. THE SALES TAX OFFICER, PONNANI, PONNANI, MALAPPURAM DISTRICT. 2. THE JOINT REGIONAL TRANSPORT OFFICER, PONNANI,AND REGISTERING AUTHORITY, MALAPPURAM DISTRICT. 3. STATE OF KERALA, REP. BY THE SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPRUAM. GOVERNMENT PLEADER FOR TAXES SRI.K.P.PRADEEP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03/04/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 18518 of 2007(D) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: TRUE COPY OF THE ORDER DATED 23.05.2000 IN C.M.P.NO. 22960/2000 EXT.P2: TRUE COPY OF THE JUDGMENT DATED 29.08.2003 IN O.P.NO. 14207/2000-N EXT.P3: TRUE COPY OF THE LETTER DATED 30.04.2007 FILED BY THE PETITIONER EXT.P4: TRUE COPY OF THE NO-OBJECTION LETTER DATED 21.05.2007 -TRUE COPY- P.A. TO JUDGE pac C.K.ABDUL REHIM, J. --------------------------------------- W.P.(C) No.18518 OF 2007 --------------------------------------- Dated this the 3rd day of April, 2009 JUDGMENT The petitioner is seeking return of the Fixed Deposit Receipt produced by him towards security against the liability of entry tax imposed upon a vehicle imported by him. According to the petitioner, since this court has struck down the validity of Kerala Tax on Entry of Goods into Local Areas Act, 1994, in a decision, Thressiamma L. Chirayil Vs. State of Kerala (2007(1) KLT 303), the security for payment of entry tax furnished by way of Bank Guarantee (Fixed Deposit Receipt) is liable to be returned. 2. The learned Government Pleader submits that, Special Leave Petition filed by the Government before the Hon'ble Supreme Court, against the above said judgment, stands already admitted, and the matter now stands referred for consideration of a Constitution Bench. However, he fairly conceded that the Hon'ble Supreme Court has not granted any stay against operation of the judgment impugned. 3. In view of the fact that validity of the statue now W.P.(C) No.18518 of 2007 2 stands struck down, there is no justification in keeping the bank guarantee. Hence, the first respondent is directed to release the bank guarantee furnished by the petitioner through deposit of 'Fixed Deposit Receipt'. However, it is made clear that the respondents will be at liberty to recover the amount of entry tax, if the Civil Appeal is ultimately allowed the Hon'ble Supreme Court. Hence, the petitioner is directed to furnish a bond in lieu of the bank guarantee, considering pendency of the Civil Appeal. The first respondent is directed to release the bank guarantee (Return the Fixed Deposit Receipt) after getting a bond executed by the petitioner, at the earliest, at any rate within two weeks from the date of receipt of a copy of this judgment. The writ petition is disposed of accordingly. C.K.ABDUL REHIM, JUDGE pac