HDFC BANK LTD. Vs. THE INTELLIGENCE OFFICER AND

JUDGEMENT

(1.) The petitioner is challenging the sustainability of the condition imposed by the appellate authority as per Ext.P4 order, whereby the petitioner has been directed to satisfy 50 % of the disputed liability and to furnish sufficient security bond for the balance amount, so as to avail the benefit of interim stay during the period of appeal. True, the time to satisfy the condition was extended subsequently, on an application preferred by the petitioner, as borne by Ext.P5 order dated 19.5.2010.

(2.) The case of the petitioner is that, sale of the vehicles concerned, which have been hypothicated with the Bank, in connection with the advance arranged in favour of the persons concerned, are liable to be sold in auction for realizing the amount due to the financier. Such an instance will not attract the tax liability; especially when such vehicles have already suffered tax at the first instance of sale and not taxable any further, submits the learned Counsel for the petitioner.

(3.) Heard the learned Government Pleader as well, who submits that, the issue is squarely covered by the decision rendered by this Court in Federal Bank Limited and Ors. v. State of Kerala(Ker) Special emphasis is also given to the observation made in paragraph 7 of the judgment, wherein it is stated as follows: