Statutory appellate remedy and interim protection preserved pending appeal, with recovery stayed and bank guarantee encashment restrained.

Limited interim protection was granted where the petitioner had a further statutory appeal remedy under the Karnataka Value Added Tax Act, 2003. The Court noted that interim relief could ordinarily be sought from the appellate forum, but, on the peculiar facts and the short time available to approach the Tribunal, temporary protection was warranted. The writ petition was therefore disposed of by allowing one week to file the appeal and staying recovery proceedings, including restraint on encashment of the bank guarantee, until that period expired.

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Issues: Whether the petitioner was entitled to interim protection against recovery proceedings and encashment of the bank guarantee for a short period to enable it to prefer an appeal before the Karnataka Appellate Tribunal.

Analysis: The assessment-related order had already been passed in first appeal under the Karnataka Value Added Tax Act, 2003, and the petitioner had a further statutory remedy before the Tribunal under Section 63. The Court noted that the appeal could be filed within the limitation period and that interim relief could be sought from the appellate forum itself. However, considering the peculiar facts, including the short time available to approach the Tribunal and the existing security furnished by way of bank guarantee, temporary protection was warranted.

Conclusion: The petitioner was granted one week to prefer the appeal before the Tribunal, and until then the impugned recovery order was stayed and the respondent was restrained from encashing the bank guarantee.

Final Conclusion: The writ petition was disposed of by granting limited interim relief to preserve the petitioner's position pending recourse to the statutory appellate remedy.

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