IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 24TH MAY 2011 / 3RD JYAISHTA 1933 WP(C).No. 9083 of 2011(I) ------------------------- PETITIONER(S): --------------- PENTAGON HEALTH CARE PVT. LTD. A-117, IIND FLOOR, ADAM BYE-PASS, ANGAMALY, REPRESENTED BY ITS MANAGING DIRECTOR, NORBERT GEORGE. BY ADV. SRI.V.M.KURIAN SRI.MATHEW B. KURIAN SRI.K.T.THOMAS RESPONDENT(S): --------------- 1. THE INTELLIGENCE OFFICER (IB), OFFICE OF THE DEPUTY COMMISSIONER (INTELLIGENCE), COMMERCIAL TAXES, PALAKKAD-678 001. 2. THE SALES TAX INSPECTOR, SALES TAX CHECKPOST, WALAYAR, PALAKKAD-678 624. 3. THE COMMERCIAL TAX OFFICER (ADMN.) OFFICE OF THE INSPECTING ASST. COMMSSIONER, COMMERCIAL TAX CHEK POST, WALAYAR.P.O., PALAKKAD DISTRICT-678 624. BY ADV.SRI.C.K.GOVINDAN, Sr.GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/05/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ami/ C.K.ABDUL REHIM, J. ------------------------------- W.P.(C).No.9083 of 2011 ------------------------------- Dated this the 24th day of May, 2011. J U D G M E N T Pursuant to detention of transport of some medical equipments at the border check post, the petitioner had approached this Court in W.P.(C)No.19014 of 2004. The detention was ordered to be released, on the petitioner furnishing bank guarantee to satisfy the demand for payment of Entry Tax. But subsequently, a Division Bench of this Court in Thressiamma Chirayil Vs. State of Kerala (ILR 2007(1) Ker. 61) had struck down the enactment, the Kerala Tax on Entry of Goods into Local Areas Act, 1994. Consequently, by Ext.P2 judgment the above said writ petition was also allowed and the demand raised for payment of Entry Tax in the case of the petitioner was quashed. 2. Grievance voiced at present is that, by virtue of Ext.P4, the 3rd respondent had demanded for renewal of the bank guarantee furnished, for a further period of 4 years, on 2 W.P.(C).No.9083 of 2011 the ground that the legal issue regarding validity of the enactment is pending final decision before the Honourable Supreme Court. According to the petitioner, they have not even received any notice from the Honourable Supreme Court in any Special Leave Petition (SLP) filed against Ext.P2 judgment. 3. Learned Government Pleader on behalf of the respondents submitted that, SLP filed against the judgment cited above along with other connected cases are pending disposal before the Honourable Supreme Court and it has already been referred for consideration of a larger Bench. Under such circumstances, it is necessary to insist upon security to ensure payment of Entry Tax, is the contention, because the petitioner will be liable for such payment if ultimately the Honourable Supreme Court decide the issue in favour of the Revenue. Therefore, the insistence for renewal of the Bank guarantee is justified, is the contention. 4. The legal position on the issue stands settled as on today, is governed by the dictum in Thressiamma Chirayil's 3 W.P.(C).No.9083 of 2011 cases (cited supra). Further, through Ext.P2 judgment the specific demand raised against the petitioner has already been quashed. It is fairly conceded by learned Government Pleader that the Honourable Supreme Court has not stayed the operation of any of the judgments impugned in the SLPs. Therefore, the respondents are not entitled to insist upon the petitioner to renew the bank guarantee. Hence Ext.P4 notice is hereby quashed. 5. However, since the legal issue is pending awaiting final decision before the Honourable Supreme Court, in order to ensure ends of justice, the petitioner is directed to furnish a security bond for the amount of Rs.6,53,920/- (Rupees six lakhs fifty three thousand nine hundred and twenty only), in the form prescribed under the Kerala Value Added Tax Rules (KVAT Rules), before the 3rd respondent, without sureties. 6. The bond as directed above is to be furnished in order to ensure payment of the amounts, if ultimately the legal issue is decided against the petitioner. The bond as 4 W.P.(C).No.9083 of 2011 directed above shall be furnished within 2 weeks from the date of receipt of a copy of this judgment. C.K.ABDUL REHIM, Judge ami/