https://www.taxtmi.com/caselaws?id=158899 Where section 29A of the Kerala General Sales Tax Act prescribes detention of goods, release on security, enquiry, penalty order, demand and time for payment, recovery from a bank guarantee must follow that statutory sequence. The authority could not bypass the prescribed mode and encash the guarantee merely because the penalty order had been made or the guarantee was nearing expiry. Since the penalty order had not been communicated before encashment, the recovery action was contrary to the Act and Rules, and the premature realisation was held illegal and without jurisdiction. en-us Thu, 05 Sep 1996 00:00:00 +0530 Sat, 09 Nov 2013 12:27:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158899 Where section 29A of the Kerala General Sales Tax Act prescribes detention of goods, release on security, enquiry, penalty order, demand and time for payment, recovery from a bank guarantee must follow that statutory sequence. The authority could not bypass the prescribed mode and encash the guarantee merely because the penalty order had been made or the guarantee was nearing expiry. Since the penalty order had not been communicated before encashment, the recovery action was contrary to the Act and Rules, and the premature realisation was held illegal and without jurisdiction. Case-Laws VAT and Sales Tax Thu, 05 Sep 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158899