ORDER
B. Subhashan Reddy, J.
1. This batch of writ petitions raises a controversy as to whether the Commercial Tax Authorities in exercise of their powers under Section 17 of the A.P.G.S.T. Act, 1957can attach the bank guarantees, which have been furnished by the excise contractors for issuing licences under the A.P. Foreign Liquor and Indian Liquor Rules, 1970. There are two bench judgments rendered by this Court – one in W.P.No.3026 of 1995 and batch dated 10-3-1995 and another in W.P. No. 5555 of 1995, dated 27-3-1995. In the first judgment viz., W.P. No. 3026 of 1995 and batch, a Division Bench of this Court held that the bank guarantees cannot be attached. The same position was clarified in another judgment in W.P. No. 5555 of 1995 to the effect that what is meant by the judgment in W.P.No.3026 of 1995 and batch was that while the bank guarantee could not be attached under Section 17of the A.P.G.S.T. Act, 1957butthatdldnotpreclude the Commercial Tax Authorities from taking other steps, mat is, other than the attachment of bank guarantees. The Commissioner of Commercial Taxes is suo motu added by me as party respondent in all the writ petitions.
2. Mr. K.V.N. Gupta and Mr. Chayanam Ravindranath, the learned Counsel appearing for the petitioners, vehemently submit that the bank guarantees, which have been furnished by the petitioners were issued by the concerned banks basing on the fixed deposits made by the licensees and when the bank guarantees cannot be attached, the said amounts under fixed deposit receipts cannot also be attached. I cannot acceed to this contention for the reason that the bank guarantee is no way concerned with the fixed deposit receipts. The bank guarantee is a document of security executed by a banker in favour of third party, that is, in the instant cases, the Government. In the event of failure to pay the amount due under the licence, the banker will pay the same on invoking the bank guarantee. Therefore, both are separate transactions and not interdependent. At the time of discharge of bank guarantee by the Excise officials, the Commercial Tax Authorities cannot come into picture at all. They have got absolutely no say in the matter with regard to the discharge of the bank guarantee. Because of the clamping of prohibition policy disabling the petitioners/licensees from proceeding with their business, the bank guarantees have got to be discharged and the respondents are bound to discharge the same and return those bank guarantees. The moment this is done, the Excise officials cease to be in the picture and the matter is then between the petitioners and their respective bankers. When the petitioners seek payment of the amounts under fixed deposit receipts, which were hitherto given as a lien for realisation in the event of invocation of bank guarantee, then the Commercial Tax Officials can step in inexercise of powers under Section 17 of the A.P.G.S.T. Act, 1957 and take suitable action or steps for realising the amounts provided they make such a requisition to the bankers in time before the payment of the amounts under fixed deposit receipts to the petitioners and on issuing the bankers the final assessment orders. All the writ petitions are disposed of with the above directions. No costs.