CROMPTON GREAVES LIMITED Vs. INTELLIGENCE INSPECTOR

JUDGEMENT

(1.) PROCEEDINGS under Section 47(2) of the Kerala Value Added Tax Act (KVAT Act) was initiated against the petitioner by Ext.P14 notice. The goods under detention was released on the petitioner furnishing bank guarantee as per Ext.P15, for the value of security deposit demanded. Subsequently, the 2nd respondent had finalised the enquiry, as contemplated under Sec.47(5). It is stated that, penalty was imposed against the petitioner under Sec.47(6) and on that basis the 2nd respondent took steps to realise the bank guarantee. Ext.P16 letter was issued to the concerned Bank requesting to realise the amount covered under the bank guarantee. Grievance of the petitioner is that the steps were initiated without even serving a copy of the order imposing penalty on the petitioner. It is pointed out that the petitioner has got a right of appeal against the order and the steps initiated without issuing a copy of such order is highly illegal and unreasonable.

(2.) HEARD; Government Pleader for respondents. Considering the facts and circumstances as stated above, I am of the view that interest of justice will be served if a direction is issued to serve a copy of the order imposing penalty on the petitioner, and the petitioner is facilitated with an opportunity to file appeal. It is only just and proper to restrain realisation of the Bank Guarantee till the disposal of the appeal, if the petitioner choses to file statutory appeal against such order.