IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 17TH JANUARY 2011 / 27TH POUSHA 1932 WP(C).No. 1568 of 2011(U) ------------------------- PETITIONER(S): --------------- M/S.SHRI.VENKATESHA HEAVY EQUIPMENTS HILL PALACE ROAD, TRIPUNITHURA, REPRESENTED BY ITS PARTNER, KARTHIK JOB. BY ADV. SMT.S.K.DEVI RESPONDENT(S): --------------- 1. THE INTELLIGENCE OFFICER, SQUAD NO.1, DEPT. OF COMMERCIAL TAXES, ERNAKULAM 682 018 2. THE DEPUTY COMMISSIONER (APPEALS), COMMERCIAL TAXES, ERNAKULAM, COCHIN-11. 3. THE MANAGER, BANK OF MAHARASHTRA, M.G.ROAD, THIRUVANANTHAPURAM, PIN-695 001. SENIOR GOVERNMENT PLEADER SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J ---------------------------- W.P.(C).NO.1568 OF 2011 ----------------------------------- Dated this the 17th day of January, 2011 JUDGMENT On detention of goods transported by the petitioner, proceedings under Section 47 of the Kerala Value Added Tax (KVAT Act) was initiated. The petitioner had furnished Bank guarantee to the tune of 50% of the security deposit demanded. On finalization of enquiry the petitioner was imposed with penalty under Ext.P1 order, to the tune of Rs.15,27,625/-, under Section 47(b) of the KVAT Act. By the said order the Bank guarantee furnished was directed to adjusted towards the penalty imposed, Ext.P2, consequential intimation, was issued in this regard to the manager of the bank concerned. 2. According to the petitioner the steps for realization of Bank guarantee was initiated even without serving a copy of the order imposing penalty and without affording an opportunity to the petitioner to challenge such order in appeal. However, it is stated that the petitioner had already approached the appellate authority by filing Ext.P3 statutory appeal. Under such circumstances, the petitioner seeking only a limited relief to direct disposal of the appeal and till then to keep in abeyance W.P.(C).NO.1568 OF 2011 2 realisation of the bank guarantee. 3. I am of the view that the writ petition can be disposed of directing the appellate authority to take appropriate steps in the matter. Hence the second respondent appellate authority is directed to consider and dispose of Ext.P3 appeal as early as possible, after affording an opportunity of hearing to the petitioner, at any rate within two months from the date of receipt of a copy of this judgment. Till such time the appeal is disposed of as directed above, steps for realisation of the Bank guarantee shall be keep in abeyance, provide the petitioner keeps the Bank guarantee alive if necessary on renewal, and also subject to condition of the petitioner furnishing security bond for the balance amount within 2 weeks from the date of receipt of a copy of this judgment. C.K.ABDUL REHIM,JUDGE pm