HON’BLE SRI JUSTICE R. SUBHASH REDDY Writ Petition No.21120 of 2010 ORDER: Heard the learned counsel for the petitioner and also the learned Government Pleader for Revenue appearing for the respondents. In this writ petition, the petitioner seeks directions by way of Mandamus to declare the action of the first respondent in imposing condition to furnish bank guarantee for an amount of Rs.3,00,000/- for release of the vehicle bearing Registration No.AP16Y 1816, pending disposal of the case registered against the petitioner in Case No.228/2010-S7 on the file of the first respondent, as illegal and arbitrary. The petitioner is the owner of the vehicle bearing Registration No. AP16Y 1816. On 23.07.2010, the Officials of the Vigilance and Enforcement Department have seized the said vehicle on the ground that it has undertaken illegal transportation of blue dyed kerosene of a quantity of 1600 litres. A copy of the seizure panchanama prepared on 23.07.2010 is placed on record. The seizure panchanama shows the seized quantity as 1600 litres worth Rs.20.800/-. Pursuant to the seizure, the matter was reported to the Joint Collector i.e., the Additional District Magistrate, Guntur. When the petitioner has filed an application for release of the vehicle, the first respondent has issued notice, dated 12.08.2010, in E.C.Act Case No.228/2010-S7, directing the petitioner to obtain bank guarantee for an amount of Rs.3,00,000/- towards value of the seized vehicle from any nationalized bank having validity for a period of one year in favour of the Joint Collector, Guntur, for releasing the vehicle. In this writ petition, it is submitted by the learned counsel for the petitioner that the value of the goods, which was being carried on by the petitioner, even according to the seizure panchanama, is Rs.20,800/- and therefore, the liability of the petitioner can be to the extent of Rs.20,800/- in view of proviso to Section 6-A(1) of the Essential Commodities Act, 1955 (for short ‘the Act’). It is also submitted that there is no reason for imposing condition of bank guarantee for an amount of Rs.3,00,000/-. On the other hand, it is submitted by the learned Government Pleader for Revenue that as the vehicle is liable to be confiscated, the authorities have imposed the condition to furnish bank guarantee for an amount of Rs.3,00,000/- for release of the vehicle. Under proviso to Section 6-A (1) of the Act, even in the case of confiscation of vehicle, it is obligatory on the part of the respondents to give an option to the owner of the vehicle to pay fine not exceeding the market price at the date of seizure of the essential commodity sought to be carried by such vehicle in lieu of its confiscation. In that view of the matter, it is clear that in any event, there cannot be any demand more than the value of the commodity, which was being transported. As such, it appears, there is no reason or justification for imposing the condition of bank guarantee for an amount of Rs.3,00,000/- for release of the vehicle. For the aforesaid reasons, this writ petition is disposed of with a direction to the respondents to release the vehicle of the petitioner bearing Registration No.AP16Y 1816, subject to his furnishing a bank guarantee for an amount of Rs.20,800/- (Rupees twenty thousand eight hundred only) having validity for a period of one year from any nationalized bank in favour of the Joint Collector, Guntur. After furnishing the bank guarantee, the vehicle shall be released in favour of the petitioner within a period of three days thereafter. No costs. _____________________ (R.SUBHASH REDDY, J) Dt: 25.08.2010. Note: Issue CC in three days. (b/o) VGB