TMI Blog2016 (7) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... nk guarantee was not furnished, the powers were exercised under Section 45 of the KVAT Act. We find that freezing of the bank account or attachment of the bank account completely, would not serve any purpose, even if we consider the scope and ambit of Section 45 of the KVAT Act. - Order of attachment of bank accounts vacated subject to the conditions - Decided partly in favor of petitioner. - WRIT APPEAL NOS. 1491-1526/2016 (T-RES) - - - Dated:- 9-6-2016 - MR. JAYANT PATEL AND MR. B.SREENIVASE GOWDA JJ. APPELLANT: BY SMT. VANI H., ADVOCATE) RESPONDENTS: (BY SMT. SHWETHA KRISHNAPPA G.P., ADV. FOR R1 R2; SRI MADHUKAR DESHPANDE, ADV. FOR R3-R5; R6-SD. THROUGH EMAIL BUT UNREPRESENTED) JUDGMENT JAYANT PATEL J A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax have been preferred before the Tribunal and all those appeals are pending as on today. It is also undisputed position that the appellant has deposited 30% of the amount and when the application for interim stay was made, the Tribunal directed for furnishing of the Bank Guarantee of remaining 70% of the amount. The appellant initially contemplated that they may be in a position to furnish bank guarantee, but subsequently they could not procure the bank guarantee and they decided to challenge the interim order passed by the Tribunal in the present group of appeals. 7. However, as the requisite condition of furnishing of bank guarantee for 70% of the demand of tax with interest etc., was also not paid, the power has been exercised by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though the appellant was to furnish bank guarantee as per the interim order passed by the Tribunal and as the bank guarantee was not furnished, the powers were exercised under Section 45 of the KVAT Act. The statement is made at the bar that about ₹ 53,00,000/- (Rupees fifty three lakhs only) is already transferred by the bankers to respondent No.1. Further, as per the bankers on account of the order passed under Section 45 of the KVAT Act, the bank accounts are not permitted to be operated. 12. We find that freezing of the bank account or attachment of the bank account completely, would not serve any purpose, even if we consider the scope and ambit of Section 45 of the KVAT Act. We would have further considered the matter but the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the aforesaid appeals. 5. It is observed that until the Tribunal decides the matter, the order passed under Section 45 of the KVAT Act, shall not be given effect in the future date from tomorrow i.e., 10.06.2016. However, after the decision of the order of the Tribunal in appeals, if any amount remains outstanding as the tax dues, it would be open to the first respondent to exercise the power under Section 45 of the KVAT Act, as may be available in law, unless there is any prohibitory order of the competent higher forum against the tax recovery. Hence directions are issued as above. The order of the learned Single Judge shall also stand modified accordingly. The appeals shall stand disposed. No order as to costs. - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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