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2013 (10) TMI 1177 - PUNJAB AND HARYANA HIGH COURTRecovery of dues - renewal of bank guarantee furnished earlier during the proceedings - Notices under Section 226(3) of the Act, treating the petitioner as an assessee in default – Direction to the Standard Chartered Bank to remit an amount of ₹ 26,26,87,000/- to the department – Held that:- A perusal of the letter reveals that the Citi Bank has clearly stated that the bank guarantee is valid in their records and has been issued on behalf of the "Motorola India Private Limited." It is not denied by the respondents that letter was received by the respondents before they appropriated money from the petitioner's account. It is, therefore, rather surprising as to how and why notices were issued, under Section 226(3) of the Act, treating the petitioner as an assessee in default and, thereafter, directing the Standard Chartered Bank to remit an amount of ₹ 26,26,87,000/- to the department. Perusal of the aforesaid bank guarantee reveals that renewal does not require any formal format, as the clauses reproduced above clearly envisage an automatic renewal for a period of three years except if the assessee does not furnish requisite documents regarding the bank guarantee to the bank and the bank, thereafter intimates the government 60 days before expiry of the bank guarantee that the guarantee shall expire on 28.02.2012 or on the happening of events enumerated in Clause 4 of the bank guarantee. – Decided in favor of Assessee.
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